EXCLUSIVE: Beeline Launches Stablecoin-Backed Home Equity Product, Targets Profitability By Late 2025

Fintech mortgage lender Beeline Holdings BLNE announced Wednesday the upcoming launch of a new home equity access product that allows homeowners to convert a portion of their home equity into immediate cash without incurring debt or monthly payments.

Beeline has partnered with a company ("RealCo") co-owned by Beeline's principal shareholder and CEO.

RealCo will issue stablecoins to access capital to purchase equity from homeowners seeking liquidity.

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RealCo is engaging with Beeline, which will source consumers and provide services. Beeline Title will provide title and escrow services.

The company said this product will be funded through a stablecoin-backed model, offering homeowners a fast and flexible alternative to traditional refinancing or HELOCs.

The hard launch is likely for late July, with beta transactions beginning in June.

The coins will be backed by ownership through a fractional deed on the property. RealCo will acquire minority ownership in homes (up to 49%) as a nominee for the funders who will receive the stablecoins. Homeowners selling equity can opt to receive RealCo-issued stablecoins or U.S. dollars.

Unlike conventional lending products, this is not a loan transaction tied to interest rates or a buy-back obligation, allowing Beeline to generate consistent revenue in any rate environment.

The company expects it would drive faster percentage-based revenue growth than traditional mortgage lenders, and with the fees, it expects to be well-positioned to reach operational profitability beginning in the fourth quarter of 2025.

RealCo will initially launch in approximately ten thousand U.S. zip codes and only enter into equity purchases on homes valued at $1 million.

Nick Liuzza, CEO of Beeline Holdings, said that provided there's equity in the home, RealCo will mint coins at closing, which may then be converted into U.S. dollars.

The stablecoin mechanism becomes the catalyst for funding, and it is secured by property recorded in 1:1 in the blockchain and in the public record, he said.

Participating homeowners will receive cash at closing and will not be required to repay the funds until the property is sold. Upon sale, RealCo, as nominee for the token holders, will receive its pro rata percentage of the net proceeds.

Beeline's existing product suite includes conventional mortgage offerings and a range of non-QM loan programs, many of which are optimized for 1099 earners, self-employed borrowers, and younger homeowners. The company emphasized that this new product is an addition, not a pivot, from its core model.

The product will likely benefit individuals who do not qualify for traditional cash-out refinancing or HELOCs but have meaningful equity. Beeline anticipates additional use cases to emerge as the product rolls out to a broader audience in the months ahead.

Key U.S. home equity lending players included Bank of America Corp BAC, JPMorgan Chase & Co JPM, LendingTree Inc. TREE, and US Bancorp USB.

Price Action: At the last check on Wednesday, BLNE shares were trading higher by 11.7% at $0.9880 premarket.

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