Skip to content
aDiamondMortgage
Menu
  • Welcome
  • Mortgage
    • Purchase
    • Refinance
    • Equity
    • Reverse
    • Commercial & Alternative
  • Resource
  • About
    • Terms Of Use
    • Privacy Policy
    • Cookie Policy (CA)
  • Contact
  • Realtors
  • Application
Menu

Is cryptocurrency the future of the mortgage industry?

Posted on 2021-04-25

Is cryptocurrency the future of the mortgage industry?

For Shawn Allen (pictured), cryptocurrency and blockchain technology represents the future of the mortgage industry – and he’s determined that Matrix Mortgage will be at the forefront of it.

The company’s founder and principal owner told Mortgage Broker News that blockchain and decentralized finance were set to “take the whole industry by storm” as Matrix announced last week that it would accept cryptocurrency for payments of goods and services.

Read more: Alternative lender to begin accepting cryptocurrency

“If you’re not prepared for what’s to come [in terms of] automation and Smart Contracts, then you’re really going to get sideswiped with the amount of technology that’s coming down the pipeline,” he said. “I’m more confident now than ever with the market and the crypto space. I figured: it’s time to really put my foot forward and say, ‘We’re here to stay, let’s get this thing going.’”

The brokerage will accept Bitcoin, Bitcoin Cash, XRP, ETH and dollar-pegged stable coins for payments, with Allen saying that blockchain in particular – a record of transactions in the form of a digital ledger – will become increasingly prevalent in the mortgage industry in the coming years.

“CMHC [the Canadian Mortgage and Housing Corporation] is kind of spearheading that whole revolution as well, with blockchain as the public ledger,” he said. “It’s very transparent and secure, and CMHC’s blockchain initiatives [are] right in line with what we’re seeing in regards to utilizing cryptocurrency, Smart Contracts and the blockchain to transact and improve the mortgage process.

“We’re not trying to make a blockchain mortgage; what we’re trying to do is originate a qualified mortgage using blockchain. We’re using the technology to try to improve the process and shorten the sales cycle.”

Allen said that Matrix was among the first in the mortgage industry to embrace the technology, which offers the ability to verify credit, income and assets, as well as potentially registering clients with non-fungible tokens and using Smart Contracts to transact peer to peer “and eliminate the need for intermediaries.”

“There are a lot of strong use cases to make the mortgage business a lot more efficient, and mitigate against fraud,” he noted.

Embracing cryptocurrency as a payment method, a Matrix press release added, also expanded the company’s reach into international markets where credit card payments are not practical, with Allen saying that the move was equally motivated by the company’s intention to “better align ourselves with the shift towards the global adoption of digital currency.”

Some may wonder whether adoption of the currency for payments requires a sizeable upheaval of a company’s digital platforms and payment systems, but Allen emphasized that it had been a smooth transition.

“It’s just like accepting Visa or Mastercard through a regular merchant services account,” he said. “But this way, it’s received in crypto and settled into Canadian dollars in the bank account.

“It goes on the balance sheet like any other transaction, and we pay taxes on those funds, the same way we would with any other transaction.”

The company has held regular information meetings for its agents about different projects and options that are currently offered on the cryptocurrency scene, with Allen emphasizing the importance of familiarizing staff with the technology and key concepts.

Having already implemented its payment processing system for cryptocurrency, Allen said that Matrix’s next step was to build its digital infrastructure to facilitate Smart Contracts and other technology.

“The whole industry is changing,” he said. “It’s going to be interesting to see, especially with CMHC coming out and saying that they’re interested in learning more about blockchain and how to implement that.

“If people are thinking that crypto is a fad, or blockchain is not real, they’re in for a rude awakening – because it’s here to stay.”

  • by Fergal McAlinden 16 Apr 2021
  • https://www.mortgagebrokernews.ca/news/alternative-lending/is-cryptocurrency-the-future-of-the-mortgage-industry-355026.aspx?utm_source=GA&utm_medium=20210416&utm_campaign=MBNW-Newsletter-20210416&utm_content=CAB225E9-A56E-4453-BA7A-30CBD695B619&tu=CAB225E9-A56E-4453-BA7A-30CBD695B619

Complimentary Hotel Stays Are here!!!

Would you like a complimentary hotel stay? Some locations are:

  • Bali, Indonesia – Hotel Rooms 8 days and 7 nights
  • Bangkok, Thailand – Hotel Rooms 5 days and 4 nights
  • Cabo San Lucas, Mexico – Hotel Rooms 5 days and 4 nights
  • Cancun, Mexico – Hotel Rooms 6 days and 5 nights
  • Dubai, United Arab Emirates – Hotel Rooms 5 days and 4 nights
  • Las Vegas, NV – Hotel Rooms 4 days and 3 nights
  • Phuket, Thailand – Hotel Rooms 8 days and 7 nights
  • Puerto Vallarta, Mexico – Hotel Rooms 6 days and 5 nights

We have teamed up with GiveAwayVaca.com to offer our clients and our realtor clients complimentary hotel stays around the globe. Simply complete your mortgage of any type with us and choose your location.

Please Note:
– Clients/users must pay taxes ~$35.00/night.
– All information may change without notice.

Mortgages-101

Selecting a mortgage is one of the biggest – and most stressful – financial decision made by many Canadians. But a clear understanding of a few basic terms and concepts can help allay some the anxiety. Here’s a primer on the basics of mortgages, along with insights into the current market.

  • more...MORTGAGES-101

Archives

Tags

Affordable Housing Alberta Banks BC Black Homeownership BOC Calgary Canada Canadian home prices CMHC Commercial Condo COVID COVID-19 Credit Credit & Debit Debt Default Deferrals Down Payment Economist Economy Equifax Government Homebuying Homeownership House Housing Canada Inclusive Interest Rates Investment Mortgage Mortgage Tips Pre-Approval Price Private. Alternative Purchase Purchase & Down Payment Real Estate Refinance Revenue Taxpayers Toronto Underwriters Vancouver

Archives

  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020

Sections

  • Mortgage
  • Economy
  • Banks
  • BOC
  • Government
  • Underwriters
  • Commercial
  • Revenue
  • Investment
  • Purchase & Down Payment
  • Credit & Debt
  • Real Estate
  • Inclusive
  • Mortgage Tips
  • All News Topics
  • To Top

Tools

  • Terms of Use
  • Privacy Policy
  • Cookie Policy

About Us

  • Contact Us
  • Feedback

Follow Us

  • Facebook
  • Twitter
  • Instagram
©2023 aDiamondMortgage | Design: Newspaperly WordPress Theme
Manage Cookie Consent
We use cookies to optimize our website and our service.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}