Bridging Crypto and Traditional Finance
In recent years, cryptocurrencies have integrated deeply into mainstream financial tools, from ATMs and debit cards to retirement accounts offered by giants like Fidelity. Now, a new frontier is emerging: using digital assets as collateral for conventional home mortgages. This innovation allows crypto holders to unlock the value of their holdings without selling, enabling them to purchase real estate directly—a game-changer for the growing number of crypto millionaires and long-term investors.
The Traditional Mortgage Barrier
In the United States, banks typically require at least 20% down payment for a conventional home loan. With the median home price reaching $392,000 in April 2022, this translates to $78,400 in liquid cash or equivalent collateral. While banks accept various assets such as business equipment, inventory, or other real estate, cryptocurrencies have historically been excluded—until now.
Early Movers: United Wholesale Mortgage’s Brief Experiment
United Wholesale Mortgage, the second-largest U.S. mortgage lender, announced in August 2021 that it would accept Bitcoin for mortgage payments. However, by October 2021, CEO Mat Ishbia told CNBC that the company had decided not to extend the pilot, citing “incremental costs and regulatory uncertainty in the crypto space.” This caution reflects the hesitation of traditional lenders in the absence of clear regulatory guidance.
Abra and Milo: Leading the Charge
On April 28, 2022, Abra, a crypto financial services firm founded by former Goldman Sachs analyst Bill Barhydt, partnered with real estate platform Propy to offer crypto-backed home loans via its Abra Borrow platform. Borrowers can secure loans using crypto collateral with interest rates ranging from 0% to 9.95%, depending on the loan-to-value ratio. “Most investors are unable to use their cryptocurrency holdings to fund the most important purchase in their life—a home,” Barhydt stated. “Our partnership bridges that gap.”
Meanwhile, Milo, a Florida-based startup, raised $17 million in Series A funding in March 2022 and launched its own crypto-backed mortgage product. Milo offers 30-year loans up to $5 million, accepting Bitcoin (BTC), Ethereum (ETH), and stablecoins as collateral. Interest rates range from 5.95% to 6.95%, with closing times as fast as two to three weeks. CEO Josip Rupena called the milestone “a validation of Milo’s vision to empower global and crypto consumers by bridging digital wealth with real-world real estate assets.”
Ledn and Figure Technologies: What’s Next
The crypto lender Ledn announced in December 2021 that it was preparing a Bitcoin-backed mortgage product, backed by $70 million in fresh funding (total raised: $103.9 million). Although not yet launched, Ledn has opened a waitlist. Its website promises: “By combining the appreciation potential of Bitcoin with the price stability of real estate, this first-of-its-kind loan offers a balanced blend of wealth-building collateral. Get a loan equal to your Bitcoin holdings—without selling a satoshi.”
Figure Technologies, founded by Mike Cagney, took a bolder approach: it plans to offer 100% loan-to-value (LTV) crypto-backed mortgages. In March 2022, Cagney explained, “You put up $5 million in BTC or ETH, we give you a $5 million mortgage—no painful process, no cash-out, any amount up to $20 million, for a 30-year mortgage. You can make payments with your crypto collateral, and we don’t rehypothecate your crypto.”
Outlook: A Growing Trend
While the number of crypto-backed mortgage providers remains small, the trend has gained visible momentum in 2022. As regulatory clarity improves and more players enter the market, the concept of buying a home with Bitcoin could become as commonplace as using crypto for online payments or investment portfolios, marking another milestone in the convergence of digital assets and traditional finance.