MORTGAGE BANK DIGITAL CURRENCYTM
By Terrabitz Labs, LLC, Ocala, FL USA Copyright 2025 All rights reserved
A Brief History of Mortgage-Backed
Currency, Past & Present
In Weimar Republic Germany in October 1923, Deutsche Rentenbank was founded as a central bank in response to the complete collapse of the value of the nations currency, the Mark, and the resulting hyperinflation that followed. The bank issued the Rentenmark as a new currency which was, by law, covered by mortgages on agricultural, commercial and industrial real estate. This meant that the money supply was limited and therefore the value of the currency remained stable. Hyperinflation came to an abrupt halt (known as the ‘Rentenmark miracle’). Rentenmark notes and coins remained in circulation along with the Reichsmark until the Deutsche Mark replaced the two currencies in 1948.
Modern Mortgage Backed Currency
GENIUS ACT compliant Stablecoins peg their price to the US dollar and require 1 to 1 reserves of high quality liquid assets such as U.S. dollars and US treasury bills, but their centralized reserve accounts can compromise decentralization and security, 2 of the the main value propositions of blockchain.
A dollar peg cannot guarantee price stability when a given coin’s cash reserves are depleted or frozen due to a bank run or failure; Likewise, one must make a sharp distinction between pegging and backing;
Gold backing, for example is only as good as one’s ability to get their hands on the gold. For a true-money use case then, a better-backed stablecoin is needed.
Enter LANDOLLAR
LANDOLLAR is issued on demand at mortgage origination to directly fund senior debt, which cannot exceed 50% loan to value for the mortgaged property. For the borrower, it is a principal-only loan denominated in LANDOLLAR, which requires mortgage principal to be repaid in same.
MBDC may be thought of as a new form of commercial bank money, issued in digital form to represent mortgage principal, and which comes out of circulation as the debt is paid off.
When combined with $USD junior debt, these duel-currency, concurrent (DCC) mortgages are originated by the same lender, and regulated and underwritten like a conventional mortgage with similar loan-to-value ratios. Naturally, principal and interest on the junior $USD debt are payable in $USD. As the issuer and guarantor of LANDOLLAR, the lender also acts as a seamless exchange for the two currencies.
By issuing MBDC rather than borrowing funds from conventional sources, mortgage lenders can realize a much lower cost of funds, and better utilize their existing dollar deposits to lend up to 300% greater loan volumes at similar margins, whilst passing on up to 40% lower blended interest rates.
LANDOLLAR can be kept as reserves or lent out, sold for US Dollars on exchanges to pay off existing debt on the mortgaged property, or any other uses consistant with sound banking practices.
At 50% loan to value, MBDC debt is 200% collateralized. MBDC Debt must be repaid in MBDC, ensuring structural and consistant demand for the currency.
As earning assets, MBDC mortgages may be pledged directly for federal reserve discount window credit lines to meet reserve requirments and insure short-term liquidity.
The requirement for MBDC mortgage principal payments sustains on-going real-world demand; burning MBDC principal as it is repaid regulates supply. Within the 50% LTV limit, additional MBDC may be minted as property values increase. These self-regulating features help maintain both a floor, and a ceiling for the value of the currency.
The traits of immutability, public transparency and decentralization are shared by real property and blockchain technology; Mortgage Bank Digital Currency combines them with straight-forward safeguards to regulate currency supply and demand; no algorithms are required.
OUR FOUNDER
With 30 years of experience in Florida commercial real estate sales, management and Investing, our founder Davidson Barlett was a real estate guy before he was a crypto guy, with extensive experience in selling income properties, and underwriting mortgages. As a hotel owner /merchant, he had extensive experince in dealing with credit card fees and disputes, and remitting local sales and resort taxes, which to his great chagrin were also subject to the merchant fees he paid monthly. The journey of understanding the significance of blockchain led him to develop a way to combine digital currency with real estate finance, and MBDC was the result.