Today we’re joined by Simon Glairy, a leading expert at the intersection of insurance technology and digital finance, to discuss a major shift in the mortgage industry. With fintech firm Milo recently surpassing US$100 million in crypto-backed mortgages, we’re exploring how AI-driven underwriting is unlocking the value of digital assets for real estate investment. This conversation will delve into the mechanics of these innovative loans, the profile of the new crypto-wealthy borrower, and how robust compliance and institutional partnerships are building trust in this emerging market.
Your firm reports zero margin calls, attributing this to AI-enhanced underwriting. Could you walk us through how this technology differs from conventional risk models and what specific metrics you monitor in real-time to maintain portfolio stability when using volatile assets like Bitcoin as collateral?
It’s a fundamental shift from static to dynamic risk assessment. Traditional underwriting looks at a snapshot in time—a credit score, income verification, and bank statements. Our approach, powered by a proprietary technology stack, treats risk as a living, breathing thing. The AI-enhanced models don’t just approve a loan; they continuously monitor the collateral’s value against the outstanding loan balance in real-time. This allows for a far more precise calculation of risk, which is why we can offer rates currently averaging around 7%. The system is designed to anticipate and mitigate risk proactively, which is the secret sauce behind that perfect track record of zero margin calls. It’s a testament to how modern insurtech can manage volatility that would leave conventional frameworks completely paralyzed.
Having surpassed US$100M in originations, could you describe the typical profile of your high-net-worth and institutional clients? What are the most common financial scenarios you see—are more people using Bitcoin to buy property or cashing out home equity to acquire more digital assets?
The clients are sophisticated high-net-worth individuals and institutions who have been largely misunderstood and underserved by traditional finance. These are crypto-wealthy investors who have significant holdings but have struggled to get credit because high-street banks simply don’t recognize digital assets as legitimate collateral. The scale we’re operating on is significant; we recently closed a single US$12 million crypto mortgage, which paints a clear picture of our clientele. As for their motivations, it’s fascinatingly diverse. We’re seeing both sides of the coin, just as Milo’s CEO, Josip Rupena, noted. There are clients using their Bitcoin to finance a home purchase without having to sell their crypto, and then there are others who see an opportunity to tap into their home equity to increase their digital asset positions. It’s a powerful two-way bridge between the digital and physical asset worlds.
Your model allows for up to 100% financing, helping investors avoid taxable events by not liquidating their crypto. Can you explain the mechanics of this structure and how it impacts how insurance underwriters and borrowers must evaluate mortgage risk when digital assets are the primary security?
The mechanics are elegantly simple but incredibly powerful. Instead of selling their Bitcoin or Ethereum to fund a cash down payment—a move that would trigger a significant capital gains tax event—borrowers pledge their digital assets as collateral. This allows them to secure up to 100% financing, with loan amounts reaching as high as US$25 million, while keeping their original investment intact. For insurance underwriters, this completely reshapes the risk evaluation process. The focus shifts from the borrower’s ability to liquidate assets to the lender’s ability to manage collateral volatility. Underwriters must now scrutinize the lender’s real-time monitoring technology, the security of their custody solutions, and the overall robustness of their risk management protocols. It’s no longer just about the borrower; it’s about the entire technology and compliance infrastructure supporting the loan.
Building institutional trust seems crucial. How have your SOC 2 compliance and partnerships with firms like Coinbase and BitGo directly contributed to attracting institutional partners? Could you detail how these robust risk management protocols work in practice during the underwriting process for a large loan?
Institutional trust is the bedrock of this entire model. Without it, you’re just a niche player. Achieving SOC 2 compliance is a critical signal to the market that you operate under a strict, audited regulatory framework. For an institutional partner, this isn’t a nice-to-have; it’s an absolute necessity. It proves your internal controls are sound. Layered on top of that are the strategic partnerships with custody giants like Coinbase and BitGo. These names carry immense weight and provide an external layer of security and validation. In practice, when underwriting a large loan, these protocols mean that an institution isn’t just trusting Milo; they’re trusting a verifiable, audited system and a network of best-in-class partners. It transforms the conversation from “Is this safe?” to “How do we integrate this into our strategy?”
What is your forecast for the crypto mortgage sector?
I believe we are at the very beginning of a major repricing of real-world assets in terms of digital collateral. The US$100 million milestone is not a peak; it’s the establishment of a viable and stable new market. As regulatory clarity improves and more institutions become comfortable with the risk management frameworks pioneered by insurtech, we’ll see an explosion in demand. The concept of using Bitcoin to secure a loan for a home will become as normal as using stocks or bonds. The key will be the continued integration of sophisticated, AI-driven insurance technology to underwrite and manage the inherent volatility, ensuring the market grows sustainably and responsibly. This isn’t just a product; it’s a paradigm shift in how we define and utilize wealth.
