Definition ∞ Home equity loans are a type of loan secured by the value of a homeowner’s equity in their property. Borrowers receive a lump sum of money that is repaid over time with interest, similar to a traditional mortgage. The equity represents the difference between the home’s market value and the outstanding balance on any mortgages.
Context ∞ The discussion around home equity loans in the context of digital assets often centers on how homeowners might leverage their property equity to invest in cryptocurrencies or other digital assets. Debates typically focus on the risks associated with borrowing against appreciating assets to invest in highly volatile markets. Future developments may involve the securitization of home equity into digital tokens or the use of decentralized finance (DeFi) protocols to access liquidity against property value.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
