Author: BUBBLE
On May 27, Cantor Fitzgerald launched its $2 billion Bitcoin mortgage plan for institutional clients, with the first trading partners including crypto companies FalconX Ltd. and Maple Finance. As one of the official underwriters of U.S. Treasury bonds, this entry by the century-old Wall Street institution is seen as a highly symbolic breakthrough.
Bitcoin is transitioning from a stock asset to a financial instrument that can influence the credit system.
Just a month later, Bill Pulte, the director of the Federal Housing Finance Agency (FHFA), dropped a significant signal. He has requested Fannie Mae and Freddie Mac, two pillars of U.S. housing credit, to study the feasibility of incorporating Bitcoin and other cryptocurrencies into the mortgage assessment system. This statement triggered a strong market reaction, with Bitcoin's price rising nearly 2.87% within 24 hours, breaking the $108,000 mark again.
As posed in the Coinbase ad, 'In 2012, you needed 30,000 Bitcoins to buy a house, and now you only need 5. If house prices keep falling in Bitcoin terms, why do they keep rising in dollar terms?', what impact will this Bitcoin mortgage have on the dollar system?
Do Bill Pulte's words count?
Bill Pulte publicly called on Fannie Mae (FNMA) and Freddie Mac (FHLMC) via Twitter to prepare for this. Fannie Mae (FNMA) and Freddie Mac (FHLMC) are two government-supported enterprises in the U.S. Although they do not directly issue loans to homebuyers, they play a core 'market maker' role in the secondary mortgage market by purchasing loans issued by private institutions, ensuring liquidity and sustainability in the loan market.
The Federal Housing Finance Agency (FHFA), established after the 2008 subprime crisis, is responsible for regulating these two entities. According to a research report by JPMorgan, as of December 2024, Fannie Mae and Freddie Mac collectively guaranteed $6.6 trillion in agency mortgage-backed securities (MBS), accounting for 50% of all outstanding mortgage debt in the U.S. The Ginnie Mae mortgage, which is fully backed by the U.S. government and directly regulated by HUD, provides $25 billion, accounting for 20%.
As of December 2024, the outstanding balance of agency (Ginnie Mae, Fannie Mae, Freddie Mac) mortgage-backed securities, source: jpmorgan
During Trump's first term, stakeholders discussed various GSE (government-sponsored enterprise) reform proposals but did not achieve any legislative progress. Pulte's use of the term 'command' in his tweet is because, as the chairman of the FHFA, he holds a 'supervisory' board position in these two companies. After taking office in March 2025, he initiated significant personnel and structural reforms, moving many directors from the two agencies, appointing himself as chairman, and firing 14 executives, including the CEO of Freddie Mac, for a comprehensive reorganization. This significantly enhanced the FHFA's control over GSEs and facilitated discussions with the White House and Treasury about a public listing plan based on 'implicit guarantees,' which could have profound implications for the financial system. The FHFA's exploration of incorporating crypto assets into mortgage underwriting marks a structural shift in regulatory attitudes towards crypto assets.
Pulte's personal background adds complexity to this message. As the third-generation head of PulteGroup, the third-largest residential construction company in the U.S., he is an heir of a real estate family, just like President Trump. He is also one of the first high-ranking federal officials among Trump's confidants to openly support cryptocurrencies. As early as 2019, he advocated for the charitable development of crypto assets on social media and revealed his significant holdings of Bitcoin and Solana. He has invested in high-volatility assets like GameStop and Marathon Digital; unlike ordinary politicians, his investment style seems more aligned with the 'Degen' image. Combined with his previous 'crypto history,' it appears he hopes to introduce crypto assets into the U.S. home-buying system is not a spur-of-the-moment decision.
Divisions within the government
On the other hand, there are evident divisions within the government. ProPublica reported 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 subsidy funds. A HUD official revealed that the promoter of the blockchain solution is Irving Dennis, the new Chief Deputy 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, overseen by HUD, is a 100% government agency. Discussions in this regard are more rigorous, and the proposal faced intense internal opposition. Some believe it could trigger a crisis similar to the 2008 subprime crisis, with some officials even calling it 'like using Monopoly money to give out funds.' An internal memo pointed out that HUD does not lack auditing and funding flow tracking capabilities; introducing blockchain and crypto payments could increase complexity and potentially lead to volatility in the value of aid funds or compliance issues.
Currently, platforms like Milo Credit and Figure Technologies are already offering mortgage products backed by Bitcoin. However, they cannot securitize loans and sell them to Fannie Mae and Freddie Mac, resulting in high loan rates and limited liquidity. Once Bitcoin is incorporated into the federal mortgage underwriting system, it will not only lower borrowing rates but also mean that holders can unleash leverage effects, shifting from 'HODL' to 'building family asset allocations in the U.S.'
Of course, the risks cannot be ignored. As former SEC official Corey Frayer warned, introducing unstable crypto assets into the $1.3 trillion mortgage system backed by FHA could cause systemic shocks with any event of market value decoupling. Legal scholar Hilary Allen bluntly stated that forcing the most vulnerable groups to serve as a testing ground for technological changes is extremely dangerous.
The core of this divergence lies in whether the U.S. is ready to formally 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 implications as it is the first time decentralized assets have had a 'housing leverage' effect. On the other hand, the volatility of crypto assets naturally presents challenges in terms of valuation and risk allocation when serving as 'reserve assets.' If Bitcoin's price fluctuates sharply, whether it can be used for mortgage evaluation involves financial regulation, liquidity management, and even systemic stability concerns.
What regulations does the new FHFA directive have? How have U.S. residents used cryptocurrencies for loans before this?
Due to the painful lessons of the 2008 subprime crisis, current U.S. housing loan assessments have strict limits on asset compliance. Borrowers must convert their cryptocurrencies to dollars and deposit them in a U.S. regulated bank account for 60 days before they can be considered 'mature funds' for assessment. Pulte's proposed direction clearly aims to break through this procedural barrier.
This official order, Decision 2025-360, requires the two mortgage giants to consider cryptocurrencies as effective assets for borrowers' 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 is settled. This directive requires Fannie Mae and Freddie Mac to develop proposals to include cryptocurrencies in their single-family mortgage risk assessments regarding borrowers' reserves. Additionally, the directive stipulates that companies should directly calculate cryptocurrency holdings without converting them to dollars.
The Federal Housing Finance Agency (FHFA) has established clear 'guidelines' regarding which cryptocurrencies meet consideration criteria. Only assets issued on regulated centralized exchanges in full compliance with relevant laws are eligible. Additionally, companies must incorporate risk mitigation measures in their assessments, including adjustments based on known volatility in the cryptocurrency market and appropriate risk reductions based on the proportion of cryptocurrencies held by the borrower.
Before any changes are implemented, companies must submit their proposals to their respective boards for approval. After board approval, the proposal must be submitted to the Federal Housing Finance Agency (FHFA) for review and final authorization. The FHFA's decision aligns with the federal government's broader approach to recognizing cryptocurrencies in financial processes and Pulte's statements 'to respond to President Trump's vision of making the U.S. the world's capital of cryptocurrency.' The issuance of this directive reflects its commitment to positioning the U.S. as a leading jurisdiction for cryptocurrency development.
What does this really mean?
It is well-known that using a highly liquid asset as collateral to exchange for a low-liquid asset has a valid underlying logic. However, BTC is at the center of multiple dimensions of interest. When it can truly be certified as an asset for U.S. pledged loans, its 'influence' may be comparable to the power of the 'Bitcoin Reserve Act' proposed before Trump took office, and this influence will not be limited to a single group. Various groups such as the American public, financial institutions, and government departments will all be affected.
How many Americans will use Bitcoin to 'buy a house', and how much can they 'save' by using Bitcoin as an intermediary?
Daryl Fairweather, the chief economist of U.S. real estate brokerage Redfin, stated, 'Due to ample time and a lack of exciting consumption options, many people began trading cryptocurrencies during the pandemic. Some of these investments fizzled out, but at the same time, it allowed some to gain significant wealth or at least enough to cover a down payment on a home.'
According to the 2025 Cryptocurrency Consumer Report from Security.org, about 28% of U.S. adults (approximately 65 million people) hold cryptocurrencies, with Gen Z and millennials having particularly high representation, with more than half of them holding or having held crypto assets. As millennials and Gen Z occupy an increasing 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 homebuyers. Among the responses to the question 'How did you accumulate down payment funds?', the most common was 'from salary' (52%), while less common responses included 'cash donations from family' (12%) and 'early withdrawals from retirement funds' (10%). Notably, the proportion of people selling cryptocurrency to buy homes gradually increased from 2019 to 2021, reaching nearly 12% by the end of 2021. Four years later, as cryptocurrencies become more prevalent, this proportion may have further increased.
Regarding how much can be saved, CJK, the founder of People's Reserve, shared a little story during a Twitter Space with Emmy-nominated producer Terence Michael on June 25. In 2017, he sold 100 BTC to buy a house, which is now worth only $500,000, but the BTC sold is now worth tens of millions. This opportunity led him to establish People's Reserve, aiming to help more people retain Bitcoin and use it as collateral to buy homes.
This also gives rise to a hypothesis: if you bought Bitcoin worth $50,000 in 2017, by 2025 it could be worth $500,000. Rather than selling your Bitcoin and paying $90,000 in capital gains tax, why not work with a cryptocurrency mortgage institution? You pledge $300,000 worth of BTC and receive a $300,000 mortgage at an interest rate of 9.25%. The lender places your Bitcoin in a custodial account; you still own the Bitcoin and only need to pay about $27,000 in interest annually (which will be lower in the future), saving you $90,000 in taxes while retaining the upside potential of BTC prices, especially under the Great Beautiful Act, which 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 hovers around 7%, while that for a 15-year mortgage is around 6%.
Institutions like Milo Credit, which have been operating for some time, can now offer Bitcoin loans with an LTV of around 50% and annual interest rates of 9–10%. On the other hand, platforms like People's Reserve, native to the BTC ecosystem, can reduce the annual interest rate to 3.5% (if LTV is 33%). If calculated accordingly, for a $500,000 mortgage over 15 years, one could save about $1,000 per month, resulting in a total interest reduction of $190,000.
Although not all institutions will have such low rates, under the current policy and regulatory push, similar rates may emerge among several key U.S. lenders, making Bitcoin loans a more prudent choice for current Americans.
Auxiliary tools 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 the mortgage assessment system, President Trump stated on his social media platform Truth, 'I am advancing the effort to take these amazing companies public (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.'
Opening up Bitcoin mortgage mechanisms provides an indirect yet significant support path for GSE privatization. It can introduce diverse collateral types into the housing finance system and create space for the depoliticization reforms of Fannie Mae and Freddie Mac from multiple dimensions, including 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 relieve the pressure on GSEs as 'lenders of last resort.' For a long time, Fannie Mae and Freddie Mac have borne the policy responsibility of providing financing guarantees for many non-traditional borrowers, including those lacking sufficient credit history or income documentation. Opening up Bitcoin mortgages will give these 'credit invisible' but 'asset visible' crypto-native investors an opportunity to enter the mortgage market through new mechanisms, thereby alleviating GSEs' unique burdens in maintaining housing inclusivity. Bitcoin, as a decentralized, verifiable, and globally liquid asset, institutionalizing its collateral capability equates to building an alternative loan pool 'outside the system,' leaving more room for structural optimization of GSE's asset pool after privatization.
In terms of capital structure, the Bitcoin mortgage mechanism may also provide financing support for the GSE privatization process through an on-chain asset securitization pathway. One of the biggest obstacles for GSEs is a regulatory capital gap of up to $180 billion, which is expected to take more than seven years to fill using retained earnings alone. If Bitcoin mortgages can be scaled, rated, and packaged into mortgage-backed securities (Crypto-MBS), not only is it expected to attract new types of capital investors, but it can also serve as a potential 'off-market supplement' to GSE asset-backed securities. The existence of such assets means GSEs do not have to rely entirely on congressional funding or taxpayer financing to gradually achieve capital independence, thus reducing systemic friction during the government exit process.
Meanwhile, this mechanism is also pushing for updates in the housing finance regulatory model. The traditional GSE assessment system is based on cash flow models such as income proof, debt-to-income ratio, and FICO credit score, whereas the widespread use of crypto asset mortgages emphasizes assessment standards of asset capability, on-chain history, and crypto wallet net worth. This shift from 'income-oriented' to 'asset-oriented' risk control logic not only helps GSEs establish a more flexible and market-oriented credit assessment model after privatization but also lays a systemic foundation for the integration of new types of mortgage assets. If regulators 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, thereby enhancing their market competitiveness.
More importantly, on the political level, promoting Bitcoin mortgages helps construct a discourse space of 'technological alternatives' to create a buffer for the Trump administration's push for GSE privatization. Privatization has traditionally faced strong resistance from Democrats, housing rights organizations, and some state governments, who worry that depoliticization will harm financing accessibility for low- and middle-income families. The legalization of crypto asset collateral mechanisms provides another policy option: while the government exits direct guarantees, the market can provide alternative financing support through technology, assets, and risk-sharing mechanisms. This logic not only helps balance public opinion but also provides policymakers with more flexible negotiating chips in reducing government debt while maintaining stability in housing finance.
Thus, although the Bitcoin loan mechanism itself does not constitute a direct tool for GSE privatization, its institutional development is undoubtedly providing a crucial 'financial buffer' for the privatization process. It expands the collateral structure of the housing finance market, releases policy responsibility space for GSEs, offers alternative capital pathways, and enhances market acceptance of financial decentralization reforms. In a new political cycle pursuing 'smaller government' and 'stronger markets', the credit function of crypto assets is gradually becoming an important component driving structural housing finance reform.
How much 'pressure' can Bitcoin relieve on mortgages?
As of now, the total market capitalization of Bitcoin is approximately $2.1 trillion, roughly equivalent to 17% of the U.S. housing mortgage market. If all Bitcoin market values were allowed to participate in mortgage collateral support, then the $2.1 trillion BTC market could support $1.05 trillion in loan principal (at 50% LTV), accounting for about 8–9% of existing housing loan stock. Even if only 50% of its acceptable portion were used as collateral, it could still support $525 billion in loan principal, accounting for 4–5%. Of course, holdings by ETFs, some listed companies, or sovereign nations are not easily included, but these parts likely only account for about 10% of the current total.
Therefore, if Bitcoin mortgages are institutionalized, it will not only have far-reaching implications for the crypto community but also release unprecedented asset conversion power to traditional finance, opening a positive cycle path capable of unleashing BTC's purchasing power without destroying the existing financial system. This means that if policies are fully implemented, Bitcoin loans could provide hundreds of billions of dollars in new financing power for the housing market, equivalent to more than 100 times the current crypto mortgage market.
(Great and Beautiful Act)
If Bill Pulte's statements are favorable for the Bitcoin mortgage business, then the official signing and implementation of the (Great Beautiful Act) is a strong shot in the arm for the 'U.S. real estate industry.' One of the core aspects is the permanent increase of the 20% QBI (Qualified Business Income) deduction ratio set in the previous (Tax Cuts and Jobs Act) to 23%, directly benefiting many individuals and entities investing in real estate through limited partnerships, S-corp structures, or REITs, with their effective marginal tax rate dropping to about 28.49%.
For real estate companies focused on rental income on their balance sheets, post-tax cash flow will significantly improve, and capital structures will be further optimized. This reform also indirectly lowers the entry costs for entities holding assets like Bitcoin to purchase properties, providing a more robust compliance framework for bridging 'on-chain assets - off-chain real estate.'
Meanwhile, the (Great Beautiful Act) restores and extends the 100% bonus depreciation mechanism and raises the immediate deduction limit for Section 179 to $2.5 million, allowing for faster tax deductions of upfront capital expenditures in real estate projects. This not only encourages concentrated investment in new properties, storage facilities, and productive assets but also helps property developers build more robust cash flow curves against a 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 offsets the delays in rental returns and long asset monetization cycles, facilitating the transformation of digital assets like BTC into more liquid underlying income rights in property projects.
Bitcoin + real estate, it seems Trump has another big move.
What projects are 'landing' in the free market?
Lending institutions
Milo Credit
Milo Credit is a financial technology company located in Florida, USA, which launched the first housing loan products backed by cryptocurrencies in the U.S. in 2022. Its business model allows users to use digital assets such as Bitcoin, Ethereum, or USDC as collateral, obtaining loans up to 100% of the property value without a cash down payment. This loan structure does not trigger capital gains tax and does not impose a forced liquidation mechanism, allowing borrowers to retain the upside potential of their crypto assets while obtaining funding for home purchases.
Milo offers loans up to $5 million, for terms up to 30 years, with current annual interest rates generally in the 9–10% range and no penalties for early repayment. The security of the collateral assets is managed by third-party custodial institutions such as Coinbase, Gemini, and BitGo. By early 2025, Milo had issued over $65 million in crypto-backed housing loans.
It is worth noting that previously, such loans were generally not compliant with U.S. federal mortgage standards and could not be packaged and sold to Fannie Mae or Freddie Mac, leading to higher funding costs and correspondingly higher interest rates. If the bill passes, this system is expected to further lower interest rates. Additionally, due to the extreme volatility of crypto asset prices, Milo still employs a certain degree of over-collateralization to ensure loan safety.
Ledn
Ledn is headquartered in Canada and is known for its 'Bitcoin-backed loans', becoming 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), with an LTV typically around 50%, instant fund availability, and the shortest loan period calculated in weeks. Unlike Milo, Ledn is not directly tied to real estate transactions, instead serving 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, emphasizing security and compliance, with collateral assets managed by third-party institutions and subject to regular audits, particularly influential in the Canadian and Latin American markets.
Moon Mortgage
Moon Mortgage is a loan platform aimed at crypto-native users, focusing on providing services for Web3 entrepreneurs, DAO members, and crypto investors without traditional credit records, offering 'mortgaging Bitcoin to buy a house.' Moon Mortgage's flagship product allows users to apply for traditionally structured home loans using BTC or ETH as collateral, with the property serving as a secondary mortgage, addressing the asymmetry between borrowers' assets and income. The platform collaborates with compliant U.S. lenders and custodians to provide users with the same rate structures and repayment mechanisms as traditional mortgages while replacing FICO credit scores with self-developed assessment models that focus 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, aimed at building a mortgage and credit system centered on Bitcoin. The project is developing various 'Bitcoin-driven' financial products, including self-repaying mortgages and loan tools (HEBLOC, which stands for Home Equity Bitcoin Line of Credit) that exchange home equity for Bitcoin liquidity. The core design philosophy of People's Reserve is to release economic value while ensuring users retain ownership of their Bitcoin. These products will not use the mortgaged Bitcoin for re-hypothecation and will adopt a multi-signature custody mechanism to prevent user assets from being controlled by centralized institutions. At the same time, People's Reserve hopes its loan interest rates can be comparable to traditional housing loans, thereby enhancing the mainstream acceptance of crypto finance. Currently, the platform is still in the product development stage and has not officially launched, but it has opened a notification subscription channel on its website, with the first batch of test services expected to launch 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 mortgages. This organization focuses on digitizing the property registration process and integrating it with crypto asset custody mechanisms to achieve fully on-chain, paperless property rights registration and debt management. According to AInvest reports, Beeline Title will officially launch its national service platform in August 2025, assisting in completing the first batch of real estate loan transactions secured by Bitcoin. The emergence of Beeline signifies that the connection between crypto assets and real estate is gradually being standardized and regulated, laying the institutional and technical foundation for future large-scale implementation.
In terms of infrastructure, MicroStrategy has also made corresponding contributions by developing a BTC credit model, which Pulte directly expressed interest in on social media X.
Can Bitcoin change the 'old rules'?
From century-old Wall Street brokerage firms to federal housing finance regulatory agencies, from Trump's public statements to the restructuring of the capital structure in the real estate industry, the financial order centered on Bitcoin is penetrating from top to bottom. The identity of Bitcoin is transitioning from 'digital cash' to 'electronic gold' and now to 'credit medium', providing traditional finance with a new way of organizing capital. This 'decentralized asset + federal-level credit tool' structure is impacting the deepest design logic of mortgages.
In the future, when Fannie Mae and Freddie Mac truly accept Bitcoin as part of their underwriting models, perhaps a new financial paradigm and ecosystem will emerge, where Bitcoin represents not only a store of value but also a new lever capable of influencing housing, taxation, credit, and even national governance.
The institutionalization of Bitcoin mortgages may become the most symbolic 'tool' under Trump's 'Great and Beautiful' era.