Author: Ali Daylami, Head of Data Analytics at BITmarkets
The relationship between mortgage banks and clients who use crypto is undergoing a fundamental shift. Not long ago, banks treated cryptocurrency trading as a risk comparable to gambling. Today, forward-thinking institutions are instead introducing products and solutions designed to turn the mortgage–crypto dynamic into a win-win scenario.
Analysts at BITmarkets have examined which countries and institutions allow investors to leverage crypto as an advantage and traced the trends shaping this market.
In Europe—particularly within the European Union—a conservative stance from traditional banks still prevails when it comes to mortgage financing. The most progressive players, according to the analysis, are concentrated in the United States.
Beyond the U.S., institutions in Singapore (DBS Bank), Japan (Mizuho Bank, SBI Sumishin Net Bank), and Switzerland (AMINA Bank) also stand out for their openness to crypto.
The U.S. at the forefront
While transactional account reviews used by banks to vet clients no longer penalize crypto activity at most institutions, the use of cryptocurrency as collateral for housing loans is only beginning to take hold. The U.S., however, has been moving faster. As early as 2022, fintech and real estate firm Milo announced it would begin offering mortgages backed by bitcoin. At the time, Milo CEO Josip Rupena said the model would allow clients to access mortgage financing at lower interest rates.
This path has favored specialized fintechs focused directly on crypto-backed mortgages. Alongside Milo, key names include Ledn, Nexo, Salt, and Mercury Bank, which caters to corporate clients and, in particular, startups.
Major banking houses are no longer staying on the sidelines either. Goldman Sachs began accepting bitcoin as collateral as early as 2022. And in June this year, JPMorgan Chase announced it would also begin issuing loans secured by cryptocurrencies and would factor in clients’ crypto holdings when assessing creditworthiness.
Legislative groundwork for crypto in mortgages
One of the most significant steps toward cementing the role of crypto in housing finance is a new U.S. mortgage bill requiring crypto assets to be considered when evaluating loan eligibility.
The proposal, introduced in late July by Senator Cynthia Lummis, targets government-sponsored enterprises Fannie Mae and Freddie Mac, with the aim of bolstering stability, liquidity, and accessibility in the mortgage market. The two agencies are tasked with drafting rules on how cryptocurrencies should be counted as part of borrowers’ assets.
Under the plan, Fannie Mae and Freddie Mac would recognize cryptocurrencies held on U.S.-regulated exchanges as part of an applicant’s portfolio. Borrowers could then use these holdings to strengthen their creditworthiness without liquidating them into dollars.
The main consideration for new rules will be how to account for the volatility of cryptocurrencies, as sudden price changes could affect collateral levels. In practice, this can be addressed relatively simply — by holding more crypto than the required minimum. A similar model is already in use by the Czech-Slovak startup Firefish, which provides loans secured by bitcoin. At the same time, only cryptocurrencies actively traded on exchanges would be eligible.
The rapid integration of crypto into mortgages reflects two realities: the growing weight of crypto assets in investor portfolios and the mounting pressure traditional banks face from nimble non-bank fintech rivals. In the end, the real winner is the borrower—gaining wider access to mortgage products and a broader range of financing options.
About BITmarkets
BITmarkets is a cryptocurrency exchange that offers 24/7 support in more than 10 languages. Traders can engage in trading over 200 cryptocurrencies, as well as gain access to daily market updates and diverse educational materials. Security is a top priority at BITmarkets, with 99.9% of client funds held in cold storage. BITmarkets continues to reshape the way digital assets are used by both retail and institutional clients, focusing on making cryptocurrency more accessible, straightforward, and better connected to the broader financial world. Learn more about BITmarkets’ license and regulatory framework, and for general information, visit www.bitmarkets.eu or the exchange’s listing on CoinMarketCap.com.
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