Primary Mortgage

Securing your digital assets: The comprehensive Milo approach

By Milo

April 24, 2023 4 min read

Table of contents
Securing your digital assets: The comprehensive Milo approach

In today's rapidly evolving technological landscape, information security and cyber risk security have become paramount concerns for businesses of all types and sizes. Milo is the first lender to offer crypto mortgages, and with this groundbreaking service comes a great responsibility to protect clients' digital assets. To achieve this goal Milo has implemented a robust security process which encompasses digital asset custody, compliance, and transparency. In this article, we will delve deeper into Milo's security controls and provide a clear roadmap of the measures that Milo has taken to ensure the safety and security of clients' assets.

pascal-bernardon-zt0HWquGXlQ-unsplash.jpg Source: Unsplash

Milo's digital asset transfer process for crypto mortgages

When it comes to our crypto mortgage lending process, Milo takes the utmost care to ensure the security and compliance of our customers' digital assets. Here's how we manage the digital asset transfer process after a customer is approved for a crypto home loan:

  1. Provide Crypto Wallet Details: After approval, the customer provides the details for the digital wallet they will be sending the assets from. As with all information provided by Milo clients/users, wallet addresses will be kept confidential and maintained in alignment with our robust Information Security & Record-Keeping policies and practices defined in greater detail below.

  2. Transaction History Review: The Milo team will review the transaction history of the sending wallet to ensure no Money-Laundering and/or Sanctions red-flags are present.

  3. Creation of Unique Milo Wallet: Once the transaction history review has been complete, a unique Milo wallet is created for the specific loan. All digital assets pledged by borrower as collateral will be stored in this wallet; and the client’s digital assets will not be commingled with the assets of Milo or other client.

  4. Test Transaction: Once the source of funds has been verified, the customer will be sent instructions for a test transaction of a nominal amount.

  5. Full Transaction: Upon completion of a successful test transaction, the customer is given the approval to send the full amount to their dedicated Milo digital asset vault to secure the loan. A confirmation receipt is provided to clients once digital assets are received.

By following this process, Milo ensures that our customers' digital assets are kept safe and secure throughout the entire crypto mortgage lending process. This process also helps to mitigate risk and ensure compliance with applicable laws and regulations.

Customers are responsible for transferring their crypto assets from their wallet to a unique Milo wallet, through a secure transaction, and all transactions involving Milo wallets require two-person authentication.

Operations, Information and Cyber risk security

Milo takes information security seriously and has implemented strict measures to ensure the confidentiality, privacy, integrity, and availability of all electronic Personal Identifiable Information (PII) it receives, maintains, processes, and/or transmits on behalf of its customers.

Milo's data architecture is hosted by Amazon Web Service (AWS), which provides a shared responsibility model, with AWS managing and controlling the infrastructure environment. All data transmissions and storage drives containing PII are encrypted. Further, the data and network segmentation mechanism deployed on AWS is done using dedicated Virtual Private Clouds (VPCs) and organizational unit accounts. Remote access to internal servers is not possible except through a VPN connection.

The safekeeping of client assets is a principal area of focus for Milo, and the company is committed to upholding the trust of stakeholders by ensuring that it takes the steps necessary to effectively prevent fraud and/or misappropriation of digital assets. Milo “vaults” are maintained by Coinbase, an industry leader in providing crypto asset custody services. The service agreement between Milo and Coinbase allows for the creation of sub-vaults for each distinct client, ensuring that client assets are segmented and not co-mingled with the crypto assets of other clients and/or Milo.

Milo’s financial operations process is extremely secure and only a small group of dedicated personnel have access to clients' financial information. The custody-related workflow group includes the Dir. of Finance, Operations Manager, and Compliance Officer, whom each have specific responsibilities related to the secure transfer, custody, and management of digital assets and vaults.

The Dir. of Finance monitors the assets of Milo as a whole, including crypto assets maintained by Coinbase, and performs periodic reviews of client sub-vaults. The Compliance Officer is responsible for reviewing all digital assets for AML/BSA and CTF-related risks, as well as additional risk-related red flags.

The company takes all necessary measures to proactively address information security, mitigate risk for its customers, and ensure known breaches are completely and effectively communicated in a timely manner.

Crypto wallet transparency

Milo does not currently utilize cold-wallet storage for client digital assets; this is to ensure seamless transactions and to guarantee the blockchain transparency necessary to provide clients a real-time snap shot of the value and location of their digital assets. Unlike with traditional financial institutions which, Milo clients are able to leverage blockchain technology to confirm their digital assets remain protected, unmingled, and are exactly where they should be – in their own Milo vault.

Milo does not employ one-time use addresses for client transactions. Instead, the company asserts that maintaining a consistent wallet address provides several distinct benefits, including:

  1. Client confidence & trust 2.Transparency in operations & liquidity and,
  2. Risk mitigation through simplicity.

It is important to note that Milo is constantly monitoring the digital asset security landscape to ensure that it maintains a comprehensive awareness of current risks. The Compliance and Security Teams at Milo are committed to adapting Milo’s security control framework to effectively mitigate threats and risks and will provide periodic updates to clients to ensure they benefits from the transparency, protection, and assurance they deserve.

In conclusion, Milo's digital asset transfer process is designed to ensure the highest level of security for its customers. As a lender that specializes in crypto mortgage lending and crypto home loans, Milo's solution offers several benefits to crypto investors, allowing them to maintain their crypto investments while accessing the necessary cash to invest in real estate. By leveraging their crypto assets, borrowers can enter the real estate market with confidence, knowing that their digital assets are safe and secure.

To learn more about the seamless and secure Milo process, speak with our loan consultants today, and in the meantime, feel free to review our security FAQs.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

Author

Stay up to date on mortgage trends

Sign up to our newsletter for the latest insights on the housing market in the U.S.

Related articles