U.S. Home Loan Returns Tokenized: Entry Starts at Just 1 USDC!
NUVA, founded by Animoca Brands and Nuva Labs, introduced the HOME token, which lets eligible non-U.S. investors participate in a pool of home-secured loans with investments starting at 1 USDC.
According to CoinDesk, HOME will pool home equity lines of credit (HELOCs) originated through Figure Technology Solutions. Homeowners borrow against the equity in their properties, while token holders’ returns will depend on the interest income and performance of the loans in the pool.
Low entry threshold for an asset class typically accessed by institutional investors
The product’s standout feature is that it turns an investment area typically accessed through securitization structures, private credit funds, or bulk loan purchases into a managed pool that can be entered with 1 USDC. Using Ethereum’s ERC-20 standard, HOME provides participation in the performance of the pool as a whole rather than ownership of individual loans.
NUVA targets an annual yield of 7 percent and will update that target each month. Interest income and loan performance will be reflected in the pool’s net asset value and, in turn, the token’s price. Returns are not guaranteed; borrower payments and the condition of the loan portfolio will determine the outcome.
HELOC balances in the U.S. reached $460 billion in the second quarter of 2026. NUVA aims to open this established lending market to crypto users, but the article did not disclose the amount invested in the HOME pool or user demand.
Who can participate, and how long will withdrawals take?
The product will be available only to eligible non-U.S. users. The United Kingdom, Hong Kong, China, the British Virgin Islands, and sanctioned regions will also be excluded. Restrictions will be enforced through wallet screening and IP address blocking.
There will be no fixed lockup period, and users can request withdrawals at any time. However, requests are expected to take approximately two U.S. business days to process. The plan is to keep 5 percent of the pool in liquid assets for small withdrawals and sell loans to meet larger requests.
How is the structure designed to address credit risk?
The initial portfolio is expected to have an average FICO credit score of at least 735, a maximum loan-to-value ratio of 69 percent, and a maximum debt-to-income ratio of 40 percent. California’s share of the portfolio will be capped at 30 percent, and each of the other states at 15 percent.
Separate from the liquidity reserve, the plan also calls for a first-loss tranche equal to approximately 5 percent of the pool’s value. This tranche will absorb losses from missed loan payments or forced sales before HOME holders do. Nuva Labs CEO Anthony Moro said this buffer does not eliminate the credit and liquidity risks associated with home loans.