Homium, a pioneering home equity line of credit (HELOC) tokenization protocol operating on Avalanche, has successfully secured $10 million in Series A funding. The investment round was spearheaded by Sorenson Impact Group and Blizzard.

In a statement, Avalanche highlighted Homium's innovative approach, enabling homeowners to access their home equity without adding to their monthly debt obligations through shared appreciation home equity loans. These loans allow homeowners to utilize a portion of their home's future appreciation for purposes such as maintenance, debt consolidation, or inheritance.

Investors, on the other hand, gain exposure to a tokenized asset representing the price appreciation of a pool of shared homes on the Homium protocol.

CEO Tommy Mercein emphasized Homium's role in creating a novel asset class for institutional investors, providing a source of uncorrelated, inflation-protected returns in their portfolios. Currently, these home tokenization loans are available in Colorado, United States.

Homium ensures the security of its tokenized assets by backing them with second mortgage loans made to owner-occupied single-family homes. Additionally, the protocol adheres to regulatory standards, with HELOC tokens being debt securities compliant with SEC's Rule 144A for private placement to institutional investors.

Employing patented technology, Homium offers investors real-time transparency into each loan within the pool, facilitating instant securitization. This approach allows investors to access pooled exposure to home price appreciation on a state-by-state basis.

Avalanche has been actively supporting on-chain tokenization protocols since July 2023, committing $50 million to investments, particularly in real estate and digital collectibles. Notably, financial services giant Citi has identified tokenization as the next "killer use case" in the crypto space.