The first Bitcoin-backed real estate loan has been issued by Escrow Company.

Glen Oaks began taking Bitcoin in 2018 and sees the loan as proof that the value proposition of the cryptocurrency is becoming obvious to borrowers and creditors. Glen Oaks Escrow, one of California's largest independent escrow firms, has completed its first refinancing using a Bitcoin-backed loan.

According to the company, this is the first time a refinancing has been completed with a buyer using Bitcoin as collateral, according to a news release published today.

Glen Oaks began accepting Bitcoin payments in 2018, and the announcement serves as evidence that the cryptocurrency's value proposition is becoming clearer to debtors and creditors.

"Seeing someone other than the property buyer use Bitcoin in a real estate transaction informs us that this technology has the potential to continue becoming more prominent, even if it is still considered new to our sector," Glen Oaks Chief Operating Officer Joe Curtis said.

It's unclear if Glen Oaks or their client kept custody of the Bitcoin used to support this loan, though a multi-signature wallet might allow the custodian and client to share access to the assets.

Glen Oaks Escrow had only supported transactions in which the buyer used Bitcoin as a means of payment prior to today's transaction.

"Seeing a lender use bitcoin for a refinance shows us that this payment mechanism is growing in terms of how and who is using it," Glen Oaks COO Joe Curtis said.

With multiple luxury houses around the United States now accessible for purchase in Bitcoin, the announcement is part of a bigger impact Bitcoin is having on the real estate sector.


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