When the 'invisible giant' controlling half of the U.S. mortgage market starts seriously eyeing the Bitcoin in your wallet, true 'grounding' in the crypto space is not far off!
The big shot managing U.S. mortgages—the director of the Federal Housing Finance Agency, Bill Maloney, is a 'rich third generation' from one of the largest real estate developers in the U.S., and he was personally appointed by Trump. The key point? He is a die-hard crypto enthusiast!
What did he do? Just yesterday (June 25), he suddenly spoke out, ordering the two 'heavyweights' of the U.S. mortgage market—Fannie Mae and Freddie Mac—to quickly study how to include cryptocurrencies like Bitcoin in people's 'asset proof' when applying for a mortgage!
What was the market's reaction? As soon as the news broke, Bitcoin jumped 2.2%, soaring to $107,000! The market share also skyrocketed to 66%. What does this indicate? Institutions and big funds smelled the opportunity and came rushing in! They know that if this happens, Bitcoin's 'utility' and 'demand' will see explosive growth!
Can you buy a house with crypto now? Currently, you can, but it's a huge hassle! You first have to sell the crypto for USD, deposit it in the bank, and then this money needs to stay in the account for 60 days before the bank recognizes it as your 'down payment' or 'deposit proof'. It's like forcibly making you cash out and lock up, losing the flexibility of holding crypto.
What is this research about? Where is the key issue?
Prices are too volatile! Bitcoin can swing thousands of dollars in a day, and banks are scared! I can imagine the inner thoughts of a bank manager: 'Today it's worth 100,000, counted as your down payment; tomorrow it drops to 80,000, who do I cry to?' So it's very likely they will have to 'discount' Bitcoin's market value or require you to hold it for a longer period.
Are stablecoins promising? Stablecoins like USDT and USDC, which are pegged to the dollar, are relatively stable and might be easier to accept. But banks also need to see if their underlying assets are transparent and solid enough.
Can the 60-day 'lock-up period' be canceled? This is what people in the crypto space dislike the most! If research could shorten or even eliminate this period, that would be fantastic!
People in the community have already started testing the waters!
Case 1: There is a loan company called Milo Credit in Florida that started doing this in 2022! They directly use your Bitcoin, Ethereum, or even stablecoins as collateral, allowing you to secure a mortgage without selling your crypto, with loans up to 100% of the property's value! By the beginning of this year, they had already issued over $65 million in 'crypto loans'! Imagine, a crypto enthusiast, holding Bitcoin, buys a sea view house in Miami without selling any coins—what a beautiful picture!
Case 2: Another fintech company, Figure, is even more aggressive, having previously offered a large loan of up to $20 million with 'crypto collateral'!
This time, it's the 'national team' personally stepping in to test the waters! Once the 'second house' opens up, all banks across the U.S. will have to follow suit. This is not just an additional 'payment method', but an epic recognition of cryptocurrency as a 'core financial asset'! How much of a discount do you think banks will ultimately give Bitcoin? Will stablecoins become the biggest winners? Can the 60-day 'lock-up period' be canceled? More importantly... will this wave of 'institutional FOMO' push Bitcoin directly toward the next ATH? Follow me and keep an eye on future developments! This could be the most significant 'real-world application' narrative of this bull market, bar none! Let's discuss in the comments, are you looking forward to the day you can use Bitcoin for your down payment?