On May 27, Cantor Fitzgerald launched its $2 billion Bitcoin-backed loan program for institutional clients, with the initial transactions involving crypto companies FalconX Ltd. and Maple Finance. As one of the official primary dealers of U.S. Treasury securities, 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 instrument that can influence the credit system.

Just a month later, Federal Housing Finance Agency (FHFA) Director Bill Pulte sent out another major signal. He has requested Fannie Mae and Freddie Mac, the two U.S. housing finance giants, to explore the feasibility of incorporating cryptocurrencies like Bitcoin into the mortgage loan evaluation system. This statement triggered a strong market reaction, with Bitcoin's price rising nearly 2.87% in 24 hours, surpassing $108,000 once again.

Do Bill Pulte's Words Matter, and What Are Fannie Mae and Freddie Mac?

Bill Pulte publicly called out Fannie Mae (FNMA) and Freddie Mac (FHLMC) on Twitter, asking these two companies to be prepared. The mentioned Fannie Mae (FNMA) and Freddie Mac (FHLMC) are two U.S. government-sponsored enterprises. While they do not directly lend to homebuyers, they play a central "market maker" role in the secondary mortgage market by purchasing home loans originated by private lenders. Their existence ensures the liquidity and sustainability of the mortgage market.

Established after the 2008 subprime mortgage crisis, the Federal Housing Finance Agency (FHFA) is responsible for regulating these two entities. According to JPMorgan's research report, by December 2024, Fannie Mae and Freddie Mac collectively guaranteed $6.6 trillion in agency mortgage-backed securities (MBS), accounting for 50% of the total outstanding U.S. mortgage debt. Ginnie Mae, a HUD-regulated agency mortgage providing $25 billion, accounting for 20% of MBS, backed by full faith and credit of the U.S. government, has provided additional support.

Outstanding balance of agency (Ginnie Mae, Fannie Mae, Freddie Mac) mortgage-backed securities as of December 2024, source: jpmorgan

During Trump's first term, stakeholders discussed various Government-Sponsored Enterprise (GSE) reform options but did not make any legislative progress. Pulte's authoritative tone in his tweets is due to his position as Chairman of the FHFA, serving in a supervisory board role in these two companies. Upon assuming office in March 2025, he carried out extensive personnel and structural reforms, reassigning multiple directors from the two institutions, assuming the role of board chairman himself, and dismissing 14 executives, including Freddie Mac's CEO, for a comprehensive reorganization. This significantly strengthened FHFA's control over GSEs and led to discussions with the White House and Treasury Department on a public listing plan with an implicit guarantee. These policy shifts have profound implications for the financial system. Now, FHFA is beginning to explore the inclusion of crypto assets in mortgage loan underwriting assessments, signaling a structural shift in regulatory attitudes toward crypto assets.

Pulte's personal background adds even more complexity to this news. As the third-generation head of Pulte Homes, the third largest home construction company in the United States, Pulte is not only an heir to a real estate dynasty like President Trump but also one of the earliest federal officials in Trump's inner circle to publicly support cryptocurrency. As early as 2019, he advocated for the charitable development of crypto assets on social media and disclosed holding a substantial amount of Bitcoin and Solana. He has invested in high-volatility assets such as GameStop and Marathon Digital, and unlike typical politicians, his investment actions seem to align more with a "Degen" image. Considering his previous "crypto resume," it seems that his desire to introduce cryptocurrency assets into the American homebuying system is not a sudden interest.

Internal Government Divergence

On the other hand, there is clear internal dissent within the government. 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, with a HUD official disclosing that the driving force behind the blockchain proposal is Irving Dennis. Dennis, HUD's newly appointed Deputy Chief Financial Officer, was a partner at the global consulting giant EY.

Unlike the "quasi-official GSEs" such as Fannie Mae and Freddie Mac managed by the FHFA, Ginnie Mae overseen by HUD is a 100% government entity. Therefore, discussions in this regard are more cautious, and the proposal faced strong internal opposition. Some believe it could trigger a crisis similar to the 2008 subprime mortgage meltdown, with some officials even likening it to "handing out billionaire game tokens as money." An internal memo pointed out that HUD has robust audit and fund tracking capabilities, and integrating blockchain and crypto payments would not only add complexity but could also lead to fluctuation in aid value and compliance issues.

Currently, platforms like Milo Credit and Figure Technologies already offer Bitcoin-backed mortgage products. However, as they cannot securitize loans to sell to Fannie Mae and Freddie Mac, loan rates remain high, and liquidity is limited. Once Bitcoin is integrated into the federal mortgage underwriting system, it can lower borrowing rates and allow holders to leverage their assets, shifting from "HODL" to "building a family asset allocation in the United States."

Of course, risks cannot be ignored. As former SEC official Corey Frayer warned, once the unstable nature of cryptocurrency assets is introduced into the $1.3 trillion mortgage-backed loan system guaranteed by the FHA, any market value decoupling event could potentially lead to systemic shock. Legal scholar Hilary Allen was even more straightforward, stating that forcibly pushing technological change by using the most vulnerable group as a testing ground is extremely dangerous.

At the core of this divergence is whether the U.S. is ready to formally integrate Bitcoin from an "alternative investment" into the public financial system. The FHFA's research direction allows holders to directly meet down payment or reserve requirements with Bitcoin balances, and the far-reaching significance lies in it being the first time a decentralized asset has the effect of "housing leverage." On the other hand, the volatility of crypto assets makes it difficult to assess their value and risk provisioning when used as a "reserve asset." If Bitcoin's price experiences significant fluctuations, the question of whether it should be allowed for mortgage evaluation involves financial regulation, liquidity management, and even systemic stability issues.

What are the provisions of the new FHFA directive? How did U.S. residents previously use cryptocurrency for loans?

Due to the harsh lessons of the 2008 subprime mortgage crisis, current U.S. mortgage evaluations have strict limitations on asset compliance. That is, even if a borrower has cryptocurrency, it must first be converted to U.S. dollars and held in a U.S. regulatory bank account for a full 60 days before it can be considered "mature funds" for evaluation. The direction proposed by Pulte clearly intends to break through this procedural barrier.

This official directive, known as Decision 2025-360, requires two mortgage giants to consider cryptocurrency as a borrower's effective asset diversification. So far, cryptocurrency has been excluded from mortgage risk assessments because borrowers typically do not convert their digital assets into dollars before the end of the loan. The directive requires Fannie Mae and Freddie Mac to develop proposals to include cryptocurrency in their borrower reserve requirements for single-family mortgage risk assessments. Additionally, the directive also stipulates that companies should calculate cryptocurrency holdings directly without converting them into dollars.

The Federal Housing Finance Agency (FHFA) has established clear "guidelines" on which cryptocurrencies qualify for consideration. Only assets issued on U.S.-regulated centralized exchanges and fully compliant with relevant laws are eligible. Furthermore, companies must include risk mitigation measures in their evaluations, adjusting based on the known volatility of the cryptocurrency market and appropriately reducing risks based on the borrower's cryptocurrency reserve ratio.

Prior to any implementation of changes, companies must submit their proposals for approval to their respective boards. Once approved by the boards, the proposals must be submitted to the Federal Housing Finance Agency (FHFA) for review and final authorization. The FHFA's decision aligns with wider recognition by the federal government of cryptocurrency in financial processes, in line with Pulte's statement "to respond to President Trump's vision of making the U.S. the world's cryptocurrency capital." The issuance of this directive reflects its commitment to positioning the U.S. as a leading jurisdiction in cryptocurrency development.

What Does This Exactly Mean?

It is well known that the underlying logic of using a highly liquid asset for collateral to exchange for a low-liquidity asset is sound. However, BTC is currently at the focal point of multiple interests. When it can truly be recognized as an asset for U.S. collateral loans, its "influence" may be as powerful as the "Bitcoin Reserve Act" proposed before Donald Trump took office, and this impact will not be limited to a single group. Various groups such as the American people, financial institutions, and government agencies will all be affected.

How Many Americans Will "Buy Homes" with Bitcoin, and How Much Money Can They "Save" by Using Bitcoin as an Intermediary?

Daryl Fairweather, Chief Economist at the U.S. real estate brokerage firm Redfin, said, "With ample time and a lack of exciting spending opportunities during the pandemic, many people started trading cryptocurrency. Some of these investments turned out to be a bubble, but at the same time, some people gained significant wealth, or at least enough to pay for a home down payment."

According to the Security.org 2025 Cryptocurrency Consumer Report, about 28% of U.S. adults (about 65 million people) hold cryptocurrency, with the Gen Z and Millennial generations having disproportionately high percentages, with more than half owning or having owned digital assets. As the Millennial and Gen Z generations increasingly dominate the U.S. real estate market, cryptocurrency as a payment method for home purchases may also become more popular.

In 2021, RedFin conducted an educational survey where they commissioned the research tech company Lucid to randomly sample 1,500 first-time homebuyers. The most common answer to the question "How did you accumulate the down payment?" was "Through wages" (52%), while less common responses were "Cash gift from family" (12%) and "Early withdrawal from retirement funds" (10%). Interestingly, the group of people who "sold cryptocurrency to buy a house" gradually increased from 2019 to the end of 2021, reaching nearly 12% by the end of 2021. As four years have passed and cryptocurrency has become more widespread, this percentage may have further increased.

As for how much money can be saved, CJK, the founder of People's Reserve, shared a story on June 25 in a Tweet Space with Terence Michael, a television and film producer nominated for an Emmy Award. Back in 2017, he sold 100 BTC to buy a house, and now the house is only worth $500,000, but the sold BTC is worth tens of millions of U.S. dollars. Therefore, this opportunity led him to establish People's Reserve, with the aim of enabling more people to hold onto Bitcoin and buy houses through collateral.

This has also given rise to a hypothesis: if you bought $50,000 worth of Bitcoin in 2017, and by 2025, its value would reach $500,000. Instead of selling your Bitcoin and paying $90,000 in capital gains tax, it might be more beneficial to work with a cryptocurrency mortgage lending institution. You pledge $300,000 worth of BTC, and in return, you receive a $300,000 mortgage loan at an interest rate of 9.25%. The lender stores your Bitcoin in a custodial account; you still own the Bitcoin. You only need to pay around $27,000 annually (which may decrease in the future) in interest, saving you the $90,000 tax. Furthermore, you retain the upward price trend of BTC and the right to hedge against inflation, especially as the Big Beautiful Bill raises the U.S. debt ceiling to $50 trillion.

Further Reading: "Trading Crypto to Make $40,000 But Owe $130,000 in Taxes – This is What Musk Mocks About U.S. Tax Law"

According to data from Freddie Mac, the current average annual interest rate for a 30-year fixed-rate mortgage in the U.S. is around 7%, while for a 15-year fixed-rate mortgage, it's around 6%.

Established entities like Milo Credit, which have been operating for some time, are now offering Bitcoin loans with an LTV around 50% at an annual interest rate of 9-10%. On the other hand, Bitcoin-native lending platforms like People's Reserve can reduce the interest rate to 3.5% (with an LTV of 33%). By this calculation, for a $500,000 15-year mortgage, you could save around $1,000 per month, resulting in $190,000 less interest paid overall.

While not all institutions offer such low rates, under current policies and regulations, these key U.S. lenders may provide rates similar to mainstream assets. Opting for a Bitcoin loan is undoubtedly a wiser choice for Americans in the present scenario.

Facilitating Tools for GSE Privatization

Just a month before the FHFA requested Fannie Mae and Freddie Mac to include Bitcoin and other cryptocurrencies in their mortgage valuation systems, former U.S. President Trump stated on his social media platform Truth, "I am advancing the work to take these amazing companies [referring to Fannie Mae, Freddie Mac] public, but I want to make it clear that the U.S. government will continue to retain its implicit guarantee, and I will steadfastly regulate them as President."

The open Bitcoin mortgage mechanism provides an indirect but important support path for the privatization of GSE, which can not only introduce diversified collateral types into the housing finance system but also create space for the decentralization reform of Fannie Mae and Freddie Mac from multiple dimensions such as risk transfer, capital formation, regulatory restructuring, and political coordination.

First, at the credit risk management level, cryptocurrency-backed loans, such as Bitcoin, are expected to help GSE alleviate the pressure of the "ultimate lender" role. For a long time, Fannie Mae and Freddie Mac have shouldered the policy responsibility of providing financing support to a large number of non-traditional borrowers, including groups with insufficient credit history or income documentation. Through the open Bitcoin mortgage mechanism, these "credit invisible" but "asset visible" crypto-native investors will have the opportunity to enter the mortgage market through a new mechanism, thereby easing GSE's unique burden in maintaining housing affordability. Bitcoin, as a decentralized, verifiable, globally liquid asset, with its institutionalized collateralization capability, is equivalent to building an "out-of-system" alternative loan pool, leaving more room for structural optimization of GSE's asset pool post-privatization.

On the capital structure front, the Bitcoin mortgage mechanism may also provide financing support for the privatization process of GSE through an encryption-native asset securitization path. One of the biggest obstacles for GSE currently is a regulatory capital shortfall of up to $180 billion, which is estimated to take over seven years to fill only through retained earnings. If Bitcoin-backed loans can form scalable, ratable, and packable mortgage-backed securities (Crypto-MBS), it not only is expected to attract new types of capital investors but also can serve as a potential "off-market supplement" to GSE asset-backed securities. The existence of such assets means that GSE may gradually achieve capital independence without entirely relying on congressional funding or taxpayer financing, thereby reducing systemic friction in the government exit process.

At the same time, this mechanism is also driving the update of the housing finance regulatory model. The traditional GSE evaluation system is based on cash flow models such as income verification, debt-to-income ratio, and FICO credit scores, while the widespread use of crypto asset-backed loans emphasizes evaluation standards based on asset capabilities, on-chain history, and crypto wallet net worth. This risk control logic shift from "income-oriented" to "asset-oriented" not only helps GSE establish a more flexible, market-oriented credit assessment model post-privatization but also lays the institutional foundation for the integration of subsequent new mortgage assets. If regulatory agencies can accommodate crypto assets into their evaluation models, then GSE will have the opportunity in the future to expand its business boundaries, participate in a broader range of financial asset endorsements, thereby enhancing its market competitiveness.

More importantly, at the political level, the promotion of Bitcoin-backed loans helps build a discourse space for a "technological substitution argument," creating a public opinion buffer for the Trump administration to advance GSE privatization. Privatization has always faced strong resistance from the Democratic Party, housing rights organizations, and some state governments, who are concerned that the decentralization will undermine the financing accessibility of low- to moderate-income families. The legalization of the cryptocurrency-backed loan mechanism provides another policy option: allowing the market to provide alternative financing support through a mechanism of technology, assets, and risk-sharing while the government exits direct guarantees. This logic not only helps balance opinions but also provides policymakers with more flexible negotiation chips between reducing government debt and maintaining housing finance stability.

Therefore, although the Bitcoin lending mechanism itself is not a direct tool for GSE privatization, its institutionalized development is undoubtedly providing a crucial "financial buffer zone" for the privatization process. It has expanded the mortgage asset structure of the housing finance market, freed up GSE's policy space, provided a capital alternative channel, and strengthened the market's willingness to accept decentralized finance reform. In a new political cycle pursuing "smaller government" and "stronger markets," the credit function of crypto assets is gradually becoming an important part of driving structural housing finance reform.

How Much Mortgage "Pressure" Can Bitcoin Release?

As of now, the total market value of Bitcoin is about $2.1 trillion, roughly equivalent to 17% of the U.S. housing mortgage market. If the entire Bitcoin market value is allowed to participate in mortgage-backed support, then the $2.1 trillion BTC market can support $1.05 trillion in loan principal (at 50% LTV), accounting for approximately 8–9% of the existing mortgage outstanding balance. If only 50% of it is considered an acceptable part as collateral, it can still support $525 billion in loan principal, accounting for 4–5%. Of course, holdings like ETFs, some listed companies, or sovereign nations are not easily involved, but these parts probably only account for about 10% of the current total.

Therefore, if Bitcoin mortgages are institutionalized, it not only holds profound implications for the crypto community but also unleashes unprecedented asset conversion power into traditional finance, opening up a virtuous cycle path that can release the purchasing power of BTC, without destroying the existing financial system. This means that if policies are fully implemented, Bitcoin lending could provide the housing market with billions of dollars in additional financing, equivalent to over 100 times the current crypto mortgage market.

"Build Back Better Act"

If Bill Pulte's call is bullish for the Bitcoin mortgage business, the formal enactment of the "Build Back Better Act" is a policy boost shot in the arm for the "U.S. real estate industry." Its most core element is to permanently increase the 20% QBI (Qualified Business Income) deduction ratio set in the original "Tax Cuts and Jobs Act" to 23%, directly benefiting a large number of individuals and corporations investing in real estate through partnerships, S-corp structures, or REITs, reducing their effective marginal tax rates to around 28.49%.

For real estate enterprises with rental income at the core of their balance sheets, after-tax cash flow will significantly improve and the capital structure will be further optimized. This reform indirectly lowers the entry costs for entities holding assets such as Bitcoin to acquire real estate through the establishment of entities, providing a more robust compliance framework for the bridging of "on-chain assets to off-chain real estate."

At the same time, the "Great Beauty Act" has restored and extended the 100% bonus depreciation mechanism and raised the immediate deduction limit of Section 179 to $2.5 million, allowing upfront capital expenditures for real estate projects to be more quickly included in pre-tax deductions. This not only encourages concentrated investment in new properties, storage facilities, and productive assets but also allows real estate developers to build a more robust cash flow curve against the backdrop of heightened interest rate uncertainty. For investors or RWA project parties attempting to leverage Bitcoin assets to purchase real estate through DAOs, LLCs, or SPVs, the restoration of the depreciation policy effectively hedges against the lag in rental returns and the long asset liquidation cycle, facilitating the transformation of BTC and other digital assets into more liquid underlying revenue rights in real estate projects.

Bitcoin + Real Estate, it seems like Trump's next big move.

What are some projects for the free market's "beachfront landing"?

Lending Institutions

Milo Credit

Milo Credit is a fintech company based in Florida, USA, that introduced the first batch of cryptocurrency-backed mortgage products in the United States starting in 2022. Its business model allows users to use cryptocurrencies such as Bitcoin, Ethereum, or USDC as collateral, enabling them to obtain a loan amount of up to 100% of the property value without a cash down payment. This loan structure does not trigger capital gains tax and does not have a margin call mechanism, allowing borrowers to retain the upside potential of their crypto assets while receiving funding for home purchases.

Milo offers loans of up to $5 million with a maximum term of 30 years. The current annual interest rate is roughly in the range of 9–10%, and there are no prepayment penalties. The security of the collateral assets is managed by third-party custodians such as Coinbase, Gemini, and BitGo. As of early 2025, Milo has disbursed over $65 million in cryptocurrency-backed home loans.

It is worth noting that these types of loans were previously not in compliance with US federal mortgage standards and could not be securitized for sale to Fannie Mae or Freddie Mac, resulting in higher funding costs and consequently higher interest rates. However, if the bill is passed, this system is expected to further reduce interest rates. Additionally, due to the volatility of crypto asset prices, Milo still uses a certain level of overcollateralization to ensure loan security.

Ledn

Headquartered in Canada, Ledn is known for its "Bitcoin-Backed Loans" and has become one of the first global native crypto platforms to explore structured products for on-chain asset lending. Ledn's core product allows users to use Bitcoin as collateral to obtain fiat currency (such as USD or USDC) loans, with an LTV typically around 50%. Funds are available immediately, and the shortest loan period is calculated on a weekly interest basis. Unlike Milo, Ledn is not directly linked to real estate transactions but serves as a short-term liquidity solution to meet the cash needs of users without selling Bitcoin. Additionally, Ledn also offers Bitcoin and USDC savings accounts and compounding services. The platform emphasizes security and compliance, with collateral assets held in third-party institutions and subject to regular audits, particularly having a certain impact in the Canadian and Latin American markets.

Moon Mortgage

Moon Mortgage is a lending platform catering to crypto-native users, focusing on providing "Bitcoin Backed Mortgage" services to Web3 entrepreneurs, DAO members, and crypto investors with no traditional credit history. The flagship product of Moon Mortgage allows users to apply for traditional structure home loans using BTC or ETH as collateral, with the property serving as secondary collateral, solving the issue of asymmetric borrower assets and income. The platform, through partnerships with U.S. compliant lenders and custodians, offers users a similar interest rate structure and repayment mechanism as traditional mortgages, while using a proprietary assessment model to replace the FICO credit score, focusing on evaluating users' on-chain asset history and risk tolerance. Moon Mortgage's positioning is more vertical, catering to crypto-native buyers, emphasizing the concept of "getting on board without selling coins," and is one of the few openly available housing loan projects in the U.S. market targeted at on-chain identity groups.

People's Reserve

People's Reserve is a crypto financial infrastructure project created by CJK Konstantinos, aiming to build a Bitcoin-centric mortgage and credit system. The project is developing various "Bitcoin-driven" financial products, including Self-Repaying Mortgages and Home Equity Bitcoin Line of Credit (HEBLOC) tools that exchange home equity for Bitcoin liquidity. The core design principle of People's Reserve is to unlock the economic value of users while safeguarding their Bitcoin ownership. These products will not rehypothecate the collateralized Bitcoin and use 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 can be comparable to traditional mortgage rates, thereby enhancing the mainstream acceptance of crypto finance. Currently, the platform is still in the product development stage and has not yet officially launched, but has opened an official website notification subscription channel, with the first batch of testing services expected to be launched on July 4th.

Infrastructure

Beeline Title

Beeline Title is not a crypto lending provider but a blockchain service company dedicated to building property registration and digital custody infrastructure for crypto-backed mortgages. The institution focuses on digitizing the property registration process and integrating it with crypto asset custody mechanisms to achieve fully on-chain, paperless property ownership registration and debt management. According to AInvest, Beeline Title is set to officially launch its national service platform in August 2025, where it will assist in completing the first batch of real estate loan transactions backed by Bitcoin. Beeline's emergence signifies the gradual standardization and compliance of the connection between crypto assets and real estate, laying the institutional and technological foundation for future large-scale implementation.

On the infrastructure side, MicroStrategy has also made a corresponding contribution by developing a BTC credit model, with Pulte expressing direct interest in it on Social Media X.

Can Bitcoin Change the "Old Rules"?

From Wall Street's century-old brokerage firms to the Federal Housing Finance Agency, from Trump's public endorsement to the restructuring of the real estate industry's capital structure, a financial order pivoted on Bitcoin is seeping through from top to bottom. Bitcoin's identity has evolved from "digital cash" to "electronic gold" to now on the verge of becoming a "credit medium," providing a new form of capital organization for traditional finance. This architecture of "decentralized asset + federal-level credit tool" is impacting the deepest design logic of mortgage lending.

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 are about to emerge, where Bitcoin represents not just wealth storage but a new lever that can impact housing, taxation, credit, and even national governance.

And the institutionalization of Bitcoin mortgages may become the most emblematic "tool" in the era of Trump's "Bigger and Better."

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