Bitcoin-Backed Mortgages: Bridging Bitcoin Wealth with Dubai Real Estate
Our vision is to bridge Bitcoin wealth with Dubai's real estate market, offering Bitcoin investors an innovative path to home ownership. Our Bitcoin-backed mortgage platform will enable clients to purchase UAE properties without selling their Bitcoin, addressing a major financing gap for international buyers.
Traditional UAE banks often reject non-resident borrowers who lack local salaries or credit history. We turn this problem into an opportunity: leveraging Bitcoin holdings as collateral to qualify clients for property loans, no local income required. This model lets investors keep their BTC while diversifying into real estate.
RM
by Robbie Maltby
Market Opportunity: Serving the Underserved
International Buyers
Dubai is a magnet for foreign investors – 43% of Dubai homes are owned by foreign nationals. Yet financing options for non-residents are limited, forcing them into all-cash purchases.
UAE Bitcoin Investors
Local investors with significant Bitcoin holdings but modest salaries face strict debt-burden ratios, limiting their borrowing capacity despite substantial Bitcoin wealth.
Growing Opportunity
Over 560 million people globally own Bitcoin, including 337 million Bitcoin holders. Dubai is actively attracting this wealth with Bitcoin-friendly regulations. We forecast robust demand from: (a) foreign Bitcoin millionaires seeking Dubai luxury property (over 4,600 homes >AED 10M sold in 2024), and (b) regional Bitcoin holders keen to convert Bitcoin gains into tangible assets.
Our Value Prop: Hold Your Bitcoin, Own Your Home
Property Ownership
Gain real estate assets without selling Bitcoin
Retain Bitcoin Upside
Keep exposure to potential BTC appreciation
Golden Visa Eligibility
Reach AED 2M threshold for residency
100% Financing
Zero down payment required
Our Bitcoin-backed mortgage will offer up to 100% financing on property purchases, eliminating the need for a cash down payment. By using Bitcoin collateral, clients avoid liquidating their holdings – no forced sale or capital gains event is triggered, a key concern for long-term BTC investors.
Product Overview: How It Works
Apply Online
Complete KYC and specify property details and BTC collateral amount
2
Secure Collateral
Transfer BTC to regulated third-party custodian (no self-custody)
Receive Funding
Loan disbursed in USDT stablecoin or AED for seller
Complete Purchase
Property transfer registered with Dubai Land Department
We will provide up to 100% Loan-to-Value financing on property purchases with Bitcoin as collateral. For example, a AED 3.7M (~$1M) property would require roughly 12 BTC at current prices. The property itself serves as secondary collateral via a mortgage lien, creating dual security.
Risk Management: Protecting All Parties
Over-Collateralization
Loans start at 100% collateralized by BTC, with property as secondary security
Dynamic LTV Monitoring
Real-time tracking of Bitcoin value relative to loan amount
Margin Call Protocol
Triggered only after significant BTC decline (~65% threshold)
Third-Party Custody
All collateral held by regulated custodians like BitGo or Coinbase Custody
Our risk framework will mirror industry leaders like Milo, which has never issued a margin call despite market volatility. By setting conservative thresholds and using third-party custody, we will protect both client assets and our loan portfolio.
Competitive Landscape: First-Mover Advantage
We will be first-movers in the UAE market with this model, but it's proven elsewhere. In the US, Milo Credit's Bitcoin mortgage has originated over $65M in loans. We've benchmarked such industry leaders to mirror best practices in loan structure, risk management, and marketing.
Regulatory Compliance: Working with VARA
VARA Licensing
Obtaining appropriate Virtual Asset Service Provider license with lending/borrowing endorsements, maintaining required capital reserves
AML & KYC
Comprehensive verification including blockchain analytics to trace BTC origin, coordination with Dubai Land Department for property transactions
Consumer Protection
Clear disclosures about risks, margin calls, and volatility, with explicit consent requirements and customer support
Reporting & Oversight
Regular filings on assets under custody, independent audits, and Proof-of-Reserves verification for transparency
Operating within a clear regulatory framework is fundamental to our business. We recognize VARA as a pioneering authority and will fully comply with its mission to create a safe, innovative Bitcoin ecosystem in Dubai.
Financial Projections: Path to Profitability
Our revenue will come primarily from interest income (8% APR) and origination fees (1% of loan principal). We project breaking even by year 2 and achieving significant profitability by year 3. By year 5, with a $300M portfolio, annual interest revenue would reach approximately $24M.
8%
Target Interest Rate
Competitive for risk profile
$100M
2-Year Loan Portfolio
Scaling to $300M by year 5
$8M
Annual Interest Revenue
At $100M portfolio size
15-20%
Target ROE
By year 3 of operations
Future revenue opportunities include integration with Dubai's growing real estate tokenization market, projected to reach $16B by 2033, where we could provide financing for tokenized property purchases.
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Or get in touch directly: robbie@bit.mortgage