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UK Coadjute to issue mortgage stablecoins to streamline property sales

Finextra | Oct 5, 2021

stablecoins in real estate - UK Coadjute to issue mortgage stablecoins to streamline property salesCoadjute, the real-time network that connects the property market, has announced plans to enable retail banks in the UK to issue a mortgage stablecoin on their network, working in partnership with global technology firm R3.  Stablecoins issued on the Coadjute Network will be the first UK Retail Bank stablecoins and the first in the world expressly designed to speed-up the completion of mortgages.

The current process for completion of a property transaction has seen little innovation in the last 20 years. Multiple parties move large amounts of money between a complex array of accounts, often using email and phone calls to communicate and check details. This creates high levels of administration which frequently cause last-minute delays in completion, and the familiar “Friday afternoon rush”. The traditional process is also vulnerable to fraud.

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Coadjute’s new approach is to enable mortgage stablecoins to be issued on the Coadjute Network. The stablecoins are purpose-built for mortgage completions and transform the efficiency with which funds can be moved and settled between the parties involved in a property transaction, including mortgage lenders, conveyancers and estate agents. Coadjute’s approach provides a ‘single source of truth’ simultaneously to all parties involved, removes the need for continuous manual reconciliation, and significantly cuts the risk of fraud. The use of mortgage stablecoins on the Coadjute Network also lowers costs by moving funds over the network and not solely through traditional payment rails.

Dan Salmons, CEO of Coadjute said: “Blockchain technology is no longer just about cryptocurrencies, and is now being applied to highly regulated environments such as Central Bank Digital Currencies. Coadjute’s mortgage stablecoin represents the ultimate in control, having been designed expressly and solely for the completion of mortgages.

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It is truly programmable money, with built-in rules that prevent it ever being used for anything other than the precise property transaction it was meant for. Our stablecoin will enable a much smoother process for property completions along with unprecedented security. It truly is a breakthrough in the property market.”

For banks, they can better manage their liquidity positions and forecasts on mortgage inflows and outflows and reduce the potential for fraud from Authorised Push Payments (APP).


NCFA Jan 2018 resize - UK Coadjute to issue mortgage stablecoins to streamline property sales The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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