The second largest US mortgage lender, United Wholesale Mortgage (UWM), has announced that it plans to begin accepting cryptocurrency payments by the end of 2021. This information was disclosed by the CEO of the company Mat Ishbia during a conference on the financial results of UWM for the past quarter.
The company itself was formerly known as United Shore Financial and made about $ 183 billion in loans in 2020. Accordingly, its support for payments in cryptocurrency can make digital assets more popular.
Recall that the massive popularization of Bitcoin as a tool for making payments delights not all analysts. For example, on the eve of the representatives of the Fitch rating agency criticized the idea of recognizing BTC as the national currency in El Salvador. In their opinion, here the country needs a new infrastructure to work with digital assets, and otherwise the heads of companies will have to deal with their storage on their own.
This, in turn, makes them a target for hackers who will definitely want to take coins from inexperienced crypto users.
However, now a large company plans to contact cryptocurrencies, which will definitely be able to provide conditions for working with coins.
Who Supports Cryptocurrencies?
Ishbia himself expects pioneering status to give UWM an edge in capturing a new segment of cryptocurrency enthusiasts. Here is a quote from him in which he shares his plans for the company. The cue is from Decrypt .
We are very pleased that this year we will indeed be able to complete the task ahead of any mortgage company in the country.
It is important to note that so far this idea is only at the level of plans. So far, the representatives of the giant do not interact with digital assets and are only going to do so within the next few months. Accordingly, now they are simply voicing support for cryptocurrencies and at the same time announcing a new direction of activity.
According to sources, Bitcoin should become the first supported crypto-asset, while Ethereum and other coins also have a chance to be recognized by the company. Ishbia continues.
I think we will start with Bitcoin, but we are monitoring the prospects for Ethereum and other coins. Before you can run, you must first learn to walk. At the same time, we remain a leader in technology and innovation, and we also try to stay first in everything we do.
This means that experts also see the potential of other cryptocurrency projects, which is logical. Still, Ethereum after the transition to version 2.0 and the Proof-of-Stake consensus mechanism will become a much more advanced project. In particular, the network will be able to cope with thousands of transactions per second instead of the current 15-16, and the commissions in this regard will be significantly lower. At the same time, Bitcoin is unlikely to receive radical improvements, which means that it is quite risky to bet exclusively on it.
Over the past few years, issuing mortgages using cryptocurrencies has really become a hot topic – and UWM already has examples to look up to. Among them is the experience of the Canadian company Mogo, which in March of this year introduced support for the crypto reward program, taking into account the mortgage. This strategy was previously explained in more detail by Mogo CEO David Feller.
Unlike traditional reward programs, bitcoin cashback has a unique characteristic – it uses an asset class that can grow in value over time. The capital of $ 3,100 invested in Bitcoin five years ago could rise to $ 350,000 today.
This means that the use of digital assets in this case will be beneficial for both clients and the companies themselves.
The active use of digital assets in the field of mortgage loans will positively play on the trend of Bitcoin adoption around the world. In the eyes of many people, the crypt will become not only a means for speculation, but also a convenient mechanism in the usual financial relations. Accordingly, there will be much more people who want to contact her, because the reputation of this asset class will not be comparable to the situation in 2017 or earlier.