CoinDesk
NUVA, the real-world asset marketplace built by Animoca Brands and Nuva Labs, launched a token called HOME that gives eligible non-U.S. investors exposure to a managed pool of U.S. home equity lines of credit for as little as 1 USDC. The vault initially holds HELOCs originated through Figure Technology Solutions and targets a 7% annual return, reset monthly, with interest income and loan performance reflected in the vault's net asset value. U.S. HELOC balances climbed to $460 billion in the second quarter, their 17th consecutive quarterly increase, according to the New York Fed.
Why it matters
HOME takes an asset class usually locked behind securitizations, private-credit funds or whole-loan purchases and packages it into a tradable, composable Ethereum ERC-20 token. "Traditional securitization was built primarily for institutional investors," Nuva Labs CEO Anthony Moro, a 22-year BNY Mellon veteran, told CoinDesk. "For individual investors, those structures can be difficult to access."
The bet is that NUVA can tap DeFi demand for yield without creating demand for the loans themselves. Figure's consumer-loan marketplace already processed $4.3 billion in volume in the second quarter, including $2.8 billion through Figure Connect.
Market impact
The first portfolio targets HELOCs with an average FICO of at least 735, combined loan-to-value of no more than 69%, and debt-to-income capped at 40%, with California exposure limited to 30%. A first-loss equity segment of roughly 5% of vault value absorbs defaults before they reach holders, and there is no lockup, though withdrawals take about two U.S. business days.
The restrictions are strict: only eligible non-U.S. users qualify, with the U.K., Hong Kong, China, the British Virgin Islands and sanctioned jurisdictions excluded via wallet screening and IP blocking. Holders do not own individual loans and remain exposed to credit and liquidity risk, so the product is a test of whether crypto yield demand scales into residential credit, not a risk-free dollar substitute.
Frequently asked questions
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What is NUVA's HOME token?
HOME is an ERC-20 token from NUVA, a real-world asset marketplace created by Animoca Brands and Nuva Labs, that gives eligible non-U.S. investors exposure to a vault of Figure-originated U.S. home equity lines of credit starting from 1 USDC.
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What yield does the HOME token target?
NUVA targets a 7% annual return on HOME, reset monthly. Interest income and loan performance are reflected in the vault's net asset value, which determines the token's price.
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Who can buy the HOME token?
Only eligible non-U.S. users can access HOME. The U.K., Hong Kong, China, the British Virgin Islands and sanctioned jurisdictions are excluded, enforced through wallet screening and IP address blocking.
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What are the borrower quality standards behind HOME?
The first portfolio targets HELOCs with an average FICO score of at least 735, a combined loan-to-value of no more than 69%, and a debt-to-income ratio of no more than 40%. California exposure is capped at 30%, other states at 15%.
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What risks do HOME holders face?
Holders do not own individual loans and remain exposed to credit and liquidity risks despite the roughly 5% first-loss buffer and 5% liquidity reserve. Larger withdrawals may require loans to be sold through Figure Connect or over the counter.
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