Ripple CLO Declares Crypto Mortgage Policy a Game-Changer for 55M Americans

Ripple's Chief Legal Officer drops a bombshell: crypto-backed mortgages aren't just coming—they're already winning.

Breaking the chains of traditional finance

Forget waiting weeks for loan approvals. The new policy slashes red tape by letting homeowners leverage digital assets—because nothing says 'American dream' like collateralizing your Bitcoin stash.

55 million reasons to care

That's how many U.S. households could tap into home equity without selling their crypto positions. Finally, a financial product that doesn't force HODLers to choose between lambos and white picket fences.

The fine print they don't want you to read

Wall Street banks are already lobbying against it—after all, why would they want competition from decentralized tech that actually benefits consumers? (Cue the 'but think of the risks!' pearl-clutching.)

One thing's clear: the mortgage industry won't know what hit it.

FHFA Directive Signals Major Shift in Mortgage Policy

Earlier this week, FHFA Director Bill Pulte issued a directive to mortgage giants Fannie Mae and Freddie Mac, urging them to begin developing frameworks that account for cryptocurrency holdings when assessing mortgage eligibility. In practical terms, this means individuals may soon be able to use digital assets like Bitcoin or XRP to qualify for home loans—without needing to convert them to U.S. dollars first.

This marks the first time a federal agency has signaled support for using cryptocurrencies as part of mortgage evaluations. The directive could reshape access to homeownership for the estimated 55 million Americans who currently own digital assets, according to Alderoty.

Ripple’s Alderoty Welcomes the News

In a public statement, Stuart Alderoty, Ripple’s Chief Legal Officer, called the policy shift “a major milestone in crypto adoption.” He emphasized that allowing crypto to play a role in home financing helps bridge the gap between decentralized finance (DeFi) and traditional financial systems.

“This is good news not just for bitcoin holders, but for anyone invested in legitimate, regulated crypto assets,” Alderoty stated. “Millions of Americans can now potentially use the assets they’ve responsibly accumulated as financial leverage in real-world scenarios like purchasing a home.”

Bitcoin and XRP as Recognized Financial Assets

The MOVE to incorporate crypto into mortgage criteria follows broader efforts to normalize cryptocurrencies as legitimate financial assets. Industry leaders including MicroStrategy co-founder Michael Saylor hailed the development as a defining moment, claiming that it “solidifies Bitcoin’s place in the American dream.”

While Bitcoin was at the center of the discussion, Ripple’s own asset XRP may also stand to benefit from this evolution. XRP is frequently promoted as a low-cost, fast-settlement option for cross-border payments and is already being integrated into banking systems globally. With clearer regulatory footing following Ripple’s partial legal victory over the SEC in 2023 and the recent $50 million settlement in 2025, XRP is increasingly seen as one of the more compliant and utility-driven assets in the crypto space.

A Boost for Young Adults and First-Time Homebuyers

Financial analysts suggest that the integration of crypto into mortgage assessments could expand access to housing, especially for younger demographics who have historically struggled to meet down payment requirements or build traditional credit profiles.

“A significant portion of Gen Z and Millennials have been investing in crypto since 2020,” noted housing economist Peter Reynolds. “This move allows them to finally put those holdings to use in a way that improves their financial lives without forcing them to sell during market dips.”

Still, not all experts are entirely optimistic. Some have raised concerns about the volatility of cryptocurrencies and how sudden price swings could affect an applicant’s mortgage eligibility. Others have drawn comparisons to the 2008 subprime mortgage crisis, cautioning against over-leveraging volatile assets.

Questions Around Custody and Centralization

One of the lingering concerns centers around asset custody. For crypto to be considered in mortgage applications, most lenders will require that the assets be stored on regulated, centralized exchanges such as Coinbase or Kraken. This requirement clashes with the self-custody ethos that underpins much of the crypto movement.

“While this is a breakthrough, it does come with trade-offs,” noted fintech analyst Sarah Mitchell. “Homebuyers will need to balance their desire for decentralization with the requirements of institutional lenders.”

Ripple’s Expanding Role in Mainstream Finance

Ripple continues to position itself as a key player in bridging the traditional and digital finance worlds. Beyond XRP, the company is developing stablecoin solutions like RLUSD and expanding its payment infrastructure in Asia, the Middle East, and Latin America.

With U.S. regulators now showing greater willingness to integrate crypto into longstanding financial systems, Ripple’s approach appears increasingly aligned with the future of compliant digital finance.

Looking Ahead

The FHFA directive is still in its early stages, and implementation could take several months or even years. However, the symbolic weight of this development has already made waves across the crypto community. It confirms that digital assets are no longer viewed as speculative tools alone but are beginning to take their place alongside traditional financial instruments in shaping American financial futures.

As Stuart Alderoty concluded in his remarks, “This is a win for consumer choice, financial innovation, and smart regulation. It’s exactly the kind of progress the crypto industry has been advocating for.”