Cryptocurrency assets enter the US mortgage system for the first time, Newrez breaks the homebuying dilemma for holders

Major U.S. mortgage lender Newrez announces a significant policy: starting from February, borrowers applying for a mortgage can directly use cryptocurrencies such as Bitcoin and Ethereum as proof of assets without prior liquidation. This marks the first time traditional financial institutions officially recognize crypto assets in mortgage approval processes, signifying that cryptocurrencies are entering the core areas of the mainstream financial system. For holders, this means the possibility of owning property while retaining the appreciation potential of digital assets.

Breaking Down Barriers in the Traditional Mortgage System

From Forced Liquidation to Direct Asset Recognition

Before Newrez's new initiative, the traditional mortgage process posed substantial obstacles for crypto holders. To apply for a mortgage, borrowers had to first convert Bitcoin or Ethereum into USD, and then keep the funds in a bank account for at least 60 days before they could be considered “mature funds” and included in the asset-liability assessment. This process incurs three types of costs:

• Forced sale of assets, risking missing out on future gains
• Capital gains tax liabilities
• Exposure to market volatility

Newrez's new approach fundamentally changes this model. Borrowers can now directly include their crypto holdings in financial assessments, with on-chain verifiability serving as reliable proof of assets. According to recent reports, the institution will prioritize accepting highly liquid, widely recognized digital assets, meaning mainstream cryptocurrencies like Bitcoin and Ethereum will receive formal recognition from financial institutions.

Practical Benefits for Holders

The core value of this policy lies in creating a “win-win” option for crypto holders:

• Preserve Appreciation Potential: Not selling assets means that if cryptocurrencies continue to rise, borrowers can fully benefit from the gains
• Avoid Tax Costs: Not liquidating avoids capital gains taxes, allowing long-term holders to save significantly on taxes
• Accelerate Mortgage Approval: Including crypto assets as qualified assets reduces waiting time for fund maturity

Currently, Bitcoin trades around $95,000, and major cryptocurrencies like Ethereum maintain substantial market sizes. For high-net-worth individuals holding hundreds of thousands or even millions of dollars in crypto, this policy's practical significance is substantial.

Repositioning the Identity of Crypto Assets

From Speculative Assets to Wealth Tools

Newrez's move sends a clear market signal: cryptocurrencies are shifting from “high-risk speculative assets” to “long-term wealth tools recognized by financial institutions.” What is driving this shift?

According to industry data, the global crypto market exceeds $3 trillion, with 45% of Generation Z and millennial investors holding cryptocurrencies. This indicates that crypto assets have become an important form of wealth, not just niche speculative instruments. As one of the top five mortgage lenders in the U.S., Newrez is clearly adapting to this market reality—rather than sticking to traditional rules, it is embracing new wealth paradigms.

This also implies that risk assessment models for cryptocurrencies in traditional finance are evolving. They are no longer viewed simply as “hard-to-verify high-volatility assets,” but are increasingly being evaluated based on blockchain transparency and market consensus. While Newrez has not yet disclosed full risk control details, it has stated that operations will be under the supervision of the Federal Housing Finance Agency (FHFA), indicating regulatory review and compliance.

Industry Demonstration and Future Outlook

Potential Chain Reactions

It is unlikely that Newrez's initiative will remain an isolated case. If the policy proves successful, other major lenders are likely to follow suit. The reasons are straightforward:

• Capturing Emerging Markets: Crypto holders are high-net-worth clients, and lenders have strong commercial incentives
• Competitive Pressure: If competitors accept crypto assets, others risk losing clients
• Regulatory Support: FHFA's framework approval suggests policy encouragement for such innovations

From an industry perspective, this could mark an accelerated phase of integration between cryptocurrencies and traditional finance. The mortgage market is one of the most conservative sectors in the financial system; if crypto assets gain recognition here, their application in other financing and investment areas could expand significantly.

Long-term Significance for the Crypto Ecosystem

This policy also carries a deeper meaning: it provides crypto assets with a “real-world anchor.” Previously, the value of cryptocurrencies was largely based on community consensus and trading demand. Now, they are beginning to connect directly with one of the most important real-world assets—real estate. This linkage will strengthen the legitimacy of crypto as a store of wealth, beyond just a trading instrument.

In my personal view, the significance of this policy may be underestimated. It is not merely a “convenience measure,” but a structural breakthrough for cryptocurrencies entering the mainstream financial system. When your digital assets can help you buy a house, their nature shifts from “speculative assets” to “essential living assets.”

Summary

Newrez's crypto mortgage initiative marks a pivotal turning point: cryptocurrencies are officially entering the U.S. mortgage system. This not only solves a practical issue for holders (buying a home without selling crypto) but also redefines the role of cryptocurrencies in traditional finance—from rejected “high-risk assets” to recognized “qualified wealth forms.”

The key takeaway is that the value of crypto assets is no longer solely reflected in trading prices but is beginning to influence major real-life decisions. As this model spreads, other financial institutions are likely to follow, further accelerating the integration of cryptocurrencies with traditional finance. For long-term crypto holders, this policy opens a new realm of possibilities.