U.S. Lender Accepts Cryptocurrency as Collateral, “Buy a Home Without Selling Bitcoin” Possible

▲ Bitcoin (BTC), Housing / ChatGPT-Generated Image

Rate, a major U.S. lending institution, is leading the institutional adoption of digital assets by including cryptocurrencies as recognized assets in mortgage underwriting.

According to cryptocurrency-focused media outlet Cointelegraph on February 24 (local time), Rate has launched a program that recognizes virtual assets such as Bitcoin (BTC) and Ethereum (ETH) held by loan applicants as eligible assets for mortgage qualification. Victor Ciardelli, CEO of Rate, determined that an innovative approach integrating digital assets into financial services is necessary as cryptocurrencies account for a growing share of modern investors’ portfolios.

Previously, investors seeking mortgage loans were required to liquidate their cryptocurrency holdings and deposit the funds into a bank account for a certain period to verify assets. Rate’s new program significantly improves this process. Applicants can have the value of their Bitcoin recognized without selling it, enabling them to pay down payments or meet reserve requirements for loan approval. The initiative is expected to help investors maintain long-term holding strategies while achieving homeownership.

To address the high volatility of digital assets, Rate has established a risk management framework that applies conservative discount rates when assessing asset values. Ciardelli explained, “Our goal is to help clients holding digital assets access mortgage loans flexibly without the inconvenience of liquidating their assets,” emphasizing that strict underwriting standards will be maintained to ensure the stability of the lending system.

This move is interpreted as a result of traditional financial institutions recognizing the practical value of digital assets amid accelerating institutional developments such as U.S. crypto market structure legislation. As cryptocurrency holdings become a direct tool for participating in real economic activities like home purchases, the social credibility and utility of digital assets are expected to expand further. Rate’s initiative is anticipated to have a significant ripple effect on other major lending institutions.

Experts are paying attention to the possibility that loan products utilizing digital assets could serve as a new channel of liquidity for the housing market. Ciardelli expressed confidence that financial solutions leveraging digital assets will become the new standard in the future lending market. Cryptocurrencies are evolving beyond mere investment vehicles into essential financial assets that support housing stability.

*Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*