Written by: BUBBLE, BlockBeats
On May 27, Cantor Fitzgerald launched its $2 billion Bitcoin mortgage program for institutional clients, with the first trading partners including crypto firms FalconX Ltd. and Maple Finance. As one of the official underwriters of U.S. Treasury bonds, the entry of this century-old Wall Street institution is seen as a highly symbolic breakthrough.
Bitcoin is transitioning from a stock asset to a financial tool that can influence the credit system.
Just a month later, Bill Pulte, the director of the Federal Housing Finance Agency (FHFA), sent a strong signal. He has requested that Fannie Mae and Freddie Mac, the two pillars of U.S. housing credit, examine the feasibility of including Bitcoin and other cryptocurrencies in their mortgage assessment systems. This statement triggered a dramatic market reaction, with Bitcoin prices rising nearly 2.87% within 24 hours, surpassing $108,000 again.
As posed in the Coinbase advertisement's soul-searching question: 'In 2012, you needed 30,000 Bitcoins to buy a house, and now you only need 5. If housing prices have been dropping in Bitcoin terms, why do they keep rising in dollar terms?' What impact will this Bitcoin mortgage have on the dollar system?
Does Bill Pulte's word count?
Bill Pulte publicly called on Fannie Mae (FNMA) and Freddie Mac (FHLMC) on Twitter, urging these two companies to prepare. The Fannie Mae (FNMA) and Freddie Mac (FHLMC) mentioned here are two government-supported enterprises in the U.S. Although they do not issue loans directly to home buyers, they play a core 'market maker' role in the secondary mortgage market by purchasing mortgages issued by private institutions, ensuring the liquidity and sustainability of the loan market.
The Federal Housing Finance Agency (FHFA), established after the 2008 subprime mortgage crisis, is responsible for regulating these two agencies. According to a research report from JPMorgan, as of December 2024, Fannie Mae and Freddie Mac guaranteed a total of $6.6 trillion in agency mortgage-backed securities (MBS), accounting for 50% of all outstanding mortgage debt in the U.S. The full trust and credit guarantee provided by the U.S. government for Ginnie Mae (directly regulated by HUD) mortgage loans amounts to $25 billion, accounting for 20%.
As of December 2024, the outstanding balance of agency (Fannie Mae, Freddie Mac) mortgage-backed securities, source: JPMorgan.
During Trump's first term, stakeholders discussed various reform proposals for GSEs (government-sponsored enterprises), but no legislative progress was made. The reason Pulte used a 'commanding' tone in his tweet is that he serves as the supervising board member of these two companies in his capacity as FHFA chairman and has made sweeping personnel and structural reforms since taking office in March 2025, reallocating many directors from the two agencies, appointing himself as board chairman, and dismissing 14 executives, including the CEO of Freddie Mac, for a comprehensive restructuring. This has significantly enhanced the FHFA's control over GSEs and engaged in consultations with the White House and the Treasury Department to explore a public listing plan based on 'implicit guarantees,' with its policy direction having far-reaching implications for the financial system. Now, as the FHFA begins exploring the inclusion of crypto assets in the mortgage underwriting assessment system, it marks a structural shift in the regulatory attitude toward crypto assets.
Pulte's personal background adds complexity to this news. As the third-generation leader of PulteGroup, the third-largest residential construction company in the U.S., he, like President Trump, is an heir of a real estate family and was also one of the earliest federal officials among Trump's confidants to publicly support cryptocurrencies. As early as 2019, he advocated for the charitable development of crypto assets on social media and disclosed his significant holdings of Bitcoin and Solana. He has invested in high-volatility assets like GameStop and Marathon Digital, and unlike ordinary politicians, his investments seem to align more closely with a 'Degen' image. Coupled with his previous 'crypto track record,' it appears he hopes to integrate crypto assets into the American housing purchasing system is not a whimsical idea.
Divisions within the government
On the other hand, there are significant divisions within the government itself. ProPublica revealed in March that the U.S. Department of Housing and Urban Development (HUD) is also exploring the use of stablecoins and blockchain technology to track federal housing assistance funds. A HUD official disclosed that the promoter of the blockchain scheme is Irving Dennis, the new Chief Financial Officer of HUD, who was previously a partner at the global consulting giant Ernst & Young.
Unlike Fannie Mae and Freddie Mac, which are 'semi-official GSEs' under the FHFA, Ginnie Mae, managed by HUD, is a 100% government agency. Therefore, discussions in this area are more rigorous. The proposal has faced intense internal opposition, with some arguing that it could trigger a crisis similar to the 2008 subprime mortgage crisis. Some officials have even described it as 'like using Monopoly money to distribute funds.' An internal memo indicated that HUD is not lacking in auditing and fund flow tracking capabilities, and introducing blockchain and crypto payments could not only increase complexity but also lead to fluctuations in the value of aid funds and compliance issues.
Currently, platforms like Milo Credit and Figure Technologies are already offering Bitcoin-collateralized mortgage products. However, they face high loan rates and limited liquidity because they cannot securitize the loans for sale to Fannie Mae and Freddie Mac. Once Bitcoin is included in the federal mortgage underwriting system, it could not only lower borrowing rates but also mean that holders can release leverage, shifting from 'HODL' to 'building family asset allocation in the U.S.'
Of course, risks cannot be ignored. As former SEC official Corey Frayer warned, once unstable crypto assets are introduced into the $1.3 trillion mortgage system guaranteed by FHA, any market cap decoupling event could bring systemic shocks. Legal scholar Hilary Allen bluntly stated that using the most vulnerable groups as laboratories for forced technological change is extremely dangerous.
The core of this division lies in whether the U.S. is ready to officially incorporate Bitcoin from an 'alternative investment' into the public financial system. The FHFA's research direction allows holders to use Bitcoin balances to directly meet down payment or reserve requirements, which has profound significance as it first gives decentralized assets a 'housing leverage' effect. On the other hand, the volatility of crypto assets naturally presents challenges in valuation and risk provisioning when used as 'reserve assets.' Whether to allow their use in mortgage assessments during periods of significant Bitcoin price volatility involves financial regulation, liquidity management, and even systemic stability issues.
What regulations does the new FHFA directive entail? How have U.S. residents previously used cryptocurrencies for loans?
Due to the painful lessons of the 2008 subprime mortgage crisis, there are strict compliance restrictions on asset evaluations in current U.S. housing loans. Borrowers who own cryptocurrencies must first convert them into U.S. dollars and deposit them in a U.S. regulated bank account for 60 days before being considered 'mature funds' for evaluation. Pulte's proposed direction clearly intends to break through this procedural barrier.
This official order, Decision No. 2025-360, requires the two mortgage giants to consider cryptocurrencies as valid assets for borrower wealth diversification. Until now, cryptocurrencies have been excluded from mortgage risk assessments because borrowers typically do not convert their digital assets to dollars before the loan concludes. The directive requires Fannie Mae and Freddie Mac to formulate proposals to include cryptocurrencies in their single-family mortgage risk assessments for borrower reserves. Furthermore, the directive mandates that companies directly calculate cryptocurrency holdings without converting them to dollars.
The Federal Housing Finance Agency (FHFA) has established clear 'guidelines' on which cryptocurrencies qualify for consideration. Only assets issued on centralized exchanges regulated by the U.S. and fully compliant with relevant laws are eligible. Moreover, companies must include risk mitigation measures in their assessments, including adjustments based on known cryptocurrency market volatility and appropriate risk reduction based on the proportion of cryptocurrency reserves held by borrowers.
Before any changes are implemented, companies must submit their proposals for approval to their respective boards. After board approval, the proposals must be submitted to the Federal Housing Finance Agency (FHFA) for review and final authorization. The FHFA's decisions align with the broader approach of the federal government in recognizing cryptocurrencies in financial processes and are consistent with Pulte's statement 'to respond to President Trump's vision of making the U.S. the world capital of cryptocurrency.' The issuance of this directive reflects its commitment to positioning the U.S. as a leading jurisdiction for the development of cryptocurrencies.
What does this mean?
It is well known that using a highly liquid asset to pledge in exchange for a low-liquid asset is a valid underlying logic, but BTC is at the center of multiple interests. When it can truly be certified as an asset for U.S. mortgage loans, its 'influence' may rival the power of the 'Bitcoin Reserve Act' proposed before Trump's presidency. This influence will not be limited to a single group; various parties including the American public, financial institutions, and government departments will be affected.
How many Americans would use Bitcoin to 'buy a house,' and how much could be 'saved' by using Bitcoin as an intermediary?
Daryl Fairweather, chief economist at U.S. real estate brokerage Redfin, stated, 'Due to ample time and a lack of exciting ways to spend, many people began trading cryptocurrencies during the pandemic. Some of these investments turned into bubbles, but at the same time, it allowed some people to amass substantial wealth, or at least reach a level sufficient to afford a down payment on a house.'
According to the 2025 Cryptocurrency Consumer Report by Security.org, about 28% of American adults (approximately 65 million people) hold cryptocurrencies, with Gen Z and millennials having particularly high rates, with over half owning or having owned crypto assets. As millennials and Gen Z occupy a growing share of the U.S. real estate market, crypto assets as a means of payment for home purchases may also become increasingly popular.
In 2021, RedFin conducted a public survey, commissioning the technology company Lucid to randomly sample 1,500 first-time home buyers. Among the responses to the question, 'How did you accumulate funds for the down payment?' the most common answer was 'using salary' (52%), while less common responses included 'cash gifts from family' (12%) and 'withdrawing funds early from retirement accounts' (10%). Notably, the percentage of people 'selling cryptocurrency to buy a house' gradually increased from 2019 to 2021, reaching nearly 12% by the end of 2021. Four years later, with the growing popularity of cryptocurrencies, this percentage may have further increased.
As for how much money can be saved, the founder of People's Reserve, CJK, shared a little story during a Twitter Space on June 25 with Emmy-nominated film producer Terence Michael. He sold 100 BTC to buy a house in 2017, and now that house is only worth $500,000, but the sold BTC has already appreciated to tens of millions of dollars. This opportunity led him to establish People's Reserve, aiming to allow more people to retain Bitcoin and use it as collateral to buy homes.
This gives rise to a hypothesis: you bought Bitcoin worth $50,000 in 2017. By 2025, its value will reach $500,000. Instead of selling your Bitcoin and paying $90,000 in capital gains tax, you could collaborate with a cryptocurrency mortgage institution, pledging $300,000 in BTC. You receive a $300,000 mortgage with an interest rate of 9.25%. The lender will place your Bitcoin in a custodial account, and you still own the Bitcoin while only needing to pay about $27,000 (which will likely be lower in the future) in interest, avoiding the $90,000 in taxes, and still retaining exposure to BTC's price appreciation and inflation protection rights, especially as the Big Beautiful Act raises the U.S. debt ceiling to $5 trillion.
According to data provided by Freddie Mac, the current annual interest rate for a 30-year mortgage in the U.S. generally floats around 7%, while the 15-year rate hovers around 6%.
Institutions like Milo Credit, which have been operating for some time, can now offer Bitcoin loan services with an LTV of about 50% at annual rates of 9-10%, whereas BTC ecosystem-native lending platforms like People's Reserve can lower the annual rate to 3.5% (if LTV is 33%). If calculated, based on a $500,000 15-year mortgage, one could save about $1,000 per month, with total interest reduced by $190,000.
Although not all institutions will have such low rates, the current policy and regulatory push may lead to interest rates similar to general assets among the main lending institutions in the U.S., making Bitcoin loans a more prudent choice for current Americans.
An auxiliary tool to promote the privatization process of GSEs.
Just a month before the FHFA requested Fannie Mae and Freddie Mac to include Bitcoin and other cryptocurrencies in their mortgage assessment systems, U.S. President Trump stated on his social media platform Truth, 'I am working to advance the public listing of these remarkable companies (referring to Freddie Mac and Fannie Mae), but I want to make it clear that the U.S. government will continue to retain its implicit guarantees, and I will steadfastly regulate them as president.'
The open Bitcoin mortgage mechanism provides an indirect but important support path for GSE privatization. It can not only introduce diversified collateral types into the housing finance system but may also create space for the de-governmentalization reforms of Fannie Mae and Freddie Mac from multiple dimensions, such as risk transfer, capital formation, regulatory restructuring, and political coordination.
First, in terms of credit risk management, Bitcoin and other crypto asset mortgages are expected to alleviate the 'lender of last resort' pressure on GSEs. For a long time, Fannie Mae and Freddie Mac have borne the policy responsibility of providing financing guarantees for a large number of non-traditional borrowers, including those lacking sufficient credit records or income documentation. Opening Bitcoin mortgages will allow these 'credit invisible' but 'asset visible' crypto-native investors to enter the mortgage market through new mechanisms, alleviating GSEs' unique burden in maintaining housing inclusivity. As a decentralized, verifiable, globally liquid asset, institutionalizing the collateral capacity of Bitcoin is equivalent to constructing an alternative loan pool 'outside the system,' leaving more structural optimization space for the asset pool of GSEs after privatization.
In terms of capital structure, Bitcoin mortgage mechanisms could potentially provide financing support for the GSE privatization process through crypto-native asset securitization paths. One of the biggest obstacles for GSEs currently is a regulatory capital shortfall of up to $180 billion, which is expected to take over seven years to fill using retained earnings alone. If Bitcoin mortgages can be scaled into rated, packageable mortgage-backed securities (Crypto-MBS), it is expected to attract new types of capital investors and serve as a potential 'off-market supplement' to GSE asset-backed securities. The existence of such assets means that GSEs do not have to rely completely on congressional funding or taxpayer financing to gradually achieve capital independence, thereby reducing systemic friction during the government exit process.
At the same time, this mechanism is also pressuring the update of the housing finance regulatory model. The traditional GSE assessment system is based on cash flow models such as income proofs, debt-to-income ratios, and FICO credit scores, whereas the widespread use of crypto asset mortgages emphasizes assessment standards based on asset capability, on-chain history, and net worth in crypto wallets. This shift from an 'income-oriented' to an 'asset-oriented' risk control logic not only helps GSEs establish a more flexible, market-oriented credit assessment model after privatization but also lays a systematic foundation for subsequent integration of new collateral assets. If regulatory agencies can accommodate crypto assets into the assessment model, GSEs will have the opportunity to expand their business boundaries and participate in a broader range of financial asset underwriting, thus enhancing their competitive position in the market.
Moreover, on a political level, promoting Bitcoin mortgages helps build a discourse space for 'technological substitution,' creating a public opinion buffer for the Trump administration's push for GSE privatization. Privatization has historically faced strong resistance from the Democratic Party, housing rights organizations, and some state governments, who worry that de-governmentalization will harm the financing accessibility for low- and middle-income families. The legalization of crypto asset collateral mechanisms provides another policy option: while the government withdraws direct guarantees, the market can provide alternative financing support through technology, asset, and risk-sharing mechanisms. This logic not only helps balance public opinion but also provides policymakers with more flexible negotiation leverage between reducing government debt and maintaining housing financial stability.
Thus, while the Bitcoin loan mechanism itself does not constitute a direct tool for GSE privatization, its institutional development is undoubtedly providing a critical 'financial buffer' for the privatization process. It expands the collateral asset structure of the housing finance market, releases the policy responsibility space of GSEs, provides alternative capital channels, and strengthens market acceptance of financial decentralization reforms. In a new political cycle that seeks 'smaller government' and 'stronger markets,' the credit function of crypto assets is gradually becoming an important part of promoting structural housing finance reform.
How much 'pressure' can Bitcoin relieve in mortgages?
As of now, the total market capitalization of Bitcoin is about $2.1 trillion, which is roughly 17% of the U.S. housing mortgage market. If the entire Bitcoin market value is allowed to participate in mortgage collateral support, then the $2.1 trillion BTC market could support $1.05 trillion of loan principal (based on a 50% LTV), accounting for about 8-9% of the existing housing loan stock. If only its 50% acceptable portion is taken as collateral, it could still support $525 billion in loan principal, accounting for 4-5%. Of course, holdings like ETFs, some public companies, or sovereign states are not easily involved, but these portions probably only account for about 10% of the current total.
Therefore, if Bitcoin mortgages are institutionalized, it would not only have profound implications for the crypto community but also release unprecedented asset conversion power to traditional finance, opening a positive circular path that unleashes BTC's purchasing power without destroying the existing financial system. This means that if the policy is fully implemented, Bitcoin loans could provide several hundred billion dollars in new financing power for the housing market, which is more than 100 times the current crypto mortgage market.
(Big Beautiful Act)
If Bill Pulte's call is a positive signal for the Bitcoin mortgage business, then the formal signing into effect of the (Big Beautiful Act) is a strong policy boost for the 'U.S. real estate industry.' The most critical aspect is the permanent increase of the QBI (Qualified Business Income) deduction rate from 20% to 23%, which directly benefits many individuals and entities investing in real estate through limited partnerships, S-corp structures, or REITs, reducing their effective marginal tax rate to around 28.49%.
For real estate companies with rental income at their core on their balance sheets, post-tax cash flow will significantly improve, and capital structure will be further optimized. This reform also indirectly lowers the entry costs for entities holding assets like Bitcoin to purchase real estate, providing a more robust compliance framework for bridging 'on-chain assets - off-chain real estate.'
Meanwhile, the (Big Beautiful Act) restores and extends the 100% bonus depreciation mechanism and raises the Section 179 immediate deduction limit to $2.5 million, allowing for quicker tax deductions of upfront capital expenditures for real estate projects. This not only encourages concentrated investment in new properties, storage facilities, and productive assets but also helps property developers build a more robust cash flow curve against the backdrop of increasing interest rate uncertainty. For investors or RWA project parties attempting to leverage Bitcoin assets to purchase properties through DAO, LLC, or SPV models, the restoration of depreciation policies effectively hedges the issues of delayed rental returns and prolonged asset monetization cycles, facilitating the transformation of digital assets like BTC into more liquid underlying income rights in real estate projects.
Bitcoin + Real Estate, it seems Trump is playing his next big move.
What projects are making landfall in the free market?
Lending institutions
Milo Credit
Milo Credit is a fintech company based in Florida, USA, and launched the first U.S. housing loan products secured by cryptocurrency in 2022. Its business model allows users to use Bitcoin, Ethereum, or USDC as collateral without a cash down payment to obtain loan amounts up to 100% of the property's value. This loan structure does not trigger capital gains tax and does not impose a forced liquidation mechanism, allowing borrowers to retain the potential for appreciation of their crypto assets while receiving support for home purchasing funds.
Milo offers loans of up to $5 million with a maximum term of 30 years, currently at annual interest rates around 9-10%, with no penalties for early repayment. The security of collateral assets is managed by third-party custodians such as Coinbase, Gemini, and BitGo. As of early 2025, Milo has issued over $65 million in crypto-collateralized home loans.
It is important to note that previous loans of this kind typically did not meet U.S. federal housing mortgage standards and could not be packaged and sold to Fannie Mae or Freddie Mac, resulting in higher funding costs and correspondingly higher interest rates. If the bill passes, the system is expected to further lower interest rates. Additionally, due to the high volatility of crypto asset prices, Milo still employs a degree of over-collateralization to ensure loan security.
Ledn
Ledn, headquartered in Canada, is known for its 'Bitcoin-backed loans' and has become one of the first crypto-native platforms to explore structured products for on-chain asset lending. Ledn's core product allows users to use Bitcoin as collateral to obtain fiat loans (such as USD or USDC), typically with an LTV of 50%, with funds arriving instantly and the shortest loan term being weekly. Unlike Milo, Ledn is not directly linked to real estate transactions but serves as a short-term liquidity solution to meet users' cash needs without selling Bitcoin. Additionally, Ledn offers savings accounts and interest services for Bitcoin and USDC. The platform emphasizes security and compliance, with collateral assets hosted by third-party institutions and undergoing regular audits, particularly influential in the Canadian and Latin American markets.
Moon Mortgage
Moon Mortgage is a lending platform aimed at crypto-native users, focusing on providing services for 'mortgaging Bitcoin to buy a house' for Web3 entrepreneurs, DAO members, and crypto investors without traditional credit records. Moon Mortgage's flagship product allows users to apply for traditional structured home loans using BTC or ETH as collateral, with the property serving as a second mortgage, addressing the issue of asymmetric assets and income for borrowers. The platform collaborates with compliant lenders and custodians in the U.S. to offer users the same interest rate structure and repayment mechanisms as traditional mortgages while using a self-developed assessment model to replace FICO scores, focusing on evaluating users' on-chain asset history and risk tolerance. Moon Mortgage is positioned more vertically, serving crypto-native buyers and emphasizing the concept of 'getting on board without selling coins,' making it one of the few publicly available mortgage projects targeting on-chain identity groups in the U.S. market.
People's Reserve
People's Reserve is a crypto-financial infrastructure project created by CJK Konstantinos, dedicated to building a mortgage and credit system centered around Bitcoin. The project is developing various 'Bitcoin-driven' financial products, including self-repaying mortgages and lending tools to exchange home equity for Bitcoin liquidity (HEBLOC, or Home Equity Bitcoin Line of Credit). The core design philosophy of People's Reserve is to release the economic value of users' Bitcoin ownership while ensuring their ownership rights. These products will not use pledged Bitcoin for re-pledging (i.e., not rehypothecating) and will employ a multi-signature custody mechanism to prevent user assets from being controlled by centralized institutions. At the same time, People's Reserve hopes that its loan interest rates will be comparable to traditional housing loans, thereby enhancing the mainstream acceptability of crypto finance. The platform is still in the product development stage and has not officially launched, but it has opened a website notification subscription channel, expecting to launch its first batch of test services on July 4.
Infrastructure
Beeline Title
Beeline Title is not a provider of crypto loans but a blockchain service company dedicated to building property registration and digital custody infrastructure for crypto mortgage loans. This organization focuses on digitizing property registration processes and integrating them with crypto asset custody mechanisms, achieving fully on-chain, paperless property rights registration and debt management. According to AInvest, Beeline Title is set to launch its national service platform in August 2025, at which point it will assist in completing the first transactions of real estate loans secured by Bitcoin. The emergence of Beeline signifies that the connection between crypto assets and real estate is gradually becoming standardized and compliant, laying a systematic and technological foundation for future large-scale implementation.
On the infrastructure front, MicroStrategy has also made corresponding contributions, developing a BTC credit model that Pulte directly expressed interest in on social media X.
Can Bitcoin change the 'old rules'?
From Wall Street's century-old brokerage firms to federal housing finance regulators, from Trump's public statements to the restructuring of the real estate industry's capital structure, a financial order based on Bitcoin is gradually permeating from top to bottom. Bitcoin's identity is shifting from 'digital cash' to 'digital gold' and is now about to become a 'credit medium,' providing a new way of organizing capital for traditional finance. This structure of 'decentralized assets + federal-level credit tools' is shaking the deepest design logic of mortgages.
In the future, when Fannie Mae and Freddie Mac truly embrace Bitcoin as part of their underwriting model, perhaps a new financial paradigm and ecosystem will emerge. Bitcoin will no longer merely represent wealth storage; it will also become a new lever that can leverage housing, taxes, credit, and even national governance.
The institutionalization of Bitcoin mortgages may become the most symbolic 'tool' under Trump's 'big and beautiful' era.