Why Crypto Will Dominate Mortgage Collateral by 2025—And Banks Hate It
Forget deeds—your Bitcoin wallet might soon unlock homeownership. The mortgage industry’s sleeping giant just woke up.
The collateral revolution no one saw coming
Blockchain’s immutable ledgers solve appraisal headaches overnight. Smart contracts auto-liquidate positions if ETH dips—no more foreclosure dramas. Suddenly, that ‘volatile’ crypto looks safer than 2008-era mortgage bonds.
Wall Street’s worst nightmare
Decentralized lending protocols are eating their lunch. Why wait 45 days for underwriting when Aave approves loans in 45 seconds? (Bonus: no ‘accidental’ fee inflation.)
The regulatory tightrope
SEC chair grumbles about ‘reckless speculation’—while quietly greenlighting Bitcoin ETFs. Pension funds now demand crypto exposure. The hypocrisy smells worse than a rug pull.
By 2025, your down payment might just be a Coinbase QR code. TradFi brokers will still charge 2% ‘convenience fees’ for the privilege.
FHFA orders federal mortgage firms to begin considering crypto
The United States (US) FHFA has directed Fannie Mae and Freddie Mac to consider integrating crypto for mortgage-related services.
FHFA Director William Pulte revealed the directive in an X post on Wednesday, stating that the MOVE aligns with President Donald Trump's plan to make America the "crypto capital of the world." The move marks a significant step toward the adoption of digital assets among federal entities.
"US Federal Housing FHFA, as conservator, hereby directs each Enterprise to prepare a proposal for consideration of cryptocurrency as an asset for reserves in their respective single-family mortgage loan risk assessments, without conversion of said cryptocurrency to U.S. dollars," wrote Pulte in the directive.
Fannie Mae and Freddie Mac are two federal backed entities that operate by purchasing house loans from lenders, bundling them into securities and ensuring consistent payments to investors.
Although the order did not specify which cryptocurrencies should be considered, it suggested digital assets "that can be evidenced and stored on a US-regulated centralized exchange subject to all applicable laws."
Several industry experts speculated that Bitcoin would be the primary asset in consideration, given its growing status within mainstream financial institutions.
Strive Funds CEO Matt Cole commented on the move by the agency in an X post on Wednesday, stating its importance to investors as it "makes it substantially easier for holders of bitcoin to purchase a house without selling their Bitcoin." He also shared that the US government is "taking Bitcoin risk on its own book" as it "implicitly guarantees mortgage loans" from both firms.
Likewise, Michael Saylor, CEO of the largest publicly-traded holder of Bitcoin, Strategy, shared that Bitcoin has now been "recognized as a reserve asset by the US housing system."
"A truly historic day. The US mortgage industry leads — and the global banking system will follow," Saylor wrote on X on Wednesday.
Saylor also previously mentioned to Director Pulte that he was open to sharing a BTC Credit Model developed by Strategy. Pulte responded that he WOULD review the model and stay in touch with him.
This is not the first time that large corporations have considered incorporating cryptocurrency into their assessment criteria. Earlier this month, several reports indicated that JPMorgan Chase will begin accepting Bitcoin ETFs as collateral for customer loans, starting with BlackRock's iShares Bitcoin Trust (IBIT).
