A $3 Billion Credit Giant Is Testing Bitcoin in the Mortgage System — Here’s How
A US-based structured-credit agency is pushing TradFi boundaries by integrating crypto into real-world lending. Newmarket Capital, managing practically $3 billion in belongings, is pioneering hybrid mortgage and industrial loans that leverage Bitcoin (BTC) alongside standard actual property as collateral.
Its affiliate, Battery Finance, is main the cost in creating monetary buildings that leverage digital belongings to help credit score with out requiring debtors to liquidate holdings.
Bitcoin to Reshape Mortgages and Real-World Lending
The initiative targets debtors who’re crypto-asset holders, together with tech-savvy Millennials and Gen Z. It gives a path to financing that preserves funding upside whereas enabling entry to conventional credit score markets.
By combining income-producing actual property with Bitcoin, the agency seeks to mitigate volatility threat whereas providing debtors a novel lending resolution.
According to Andrew Hohns, Founder and CEO of Newmarket Capital and Battery Finance, the mannequin includes income-producing properties, reminiscent of industrial actual property, paired with a portion of the borrower’s Bitcoin holdings as supplemental collateral.
Bitcoin is valued as a part of the total mortgage bundle, offering lenders with an asset that’s liquid, divisible, and clear, in contrast to actual property alone.
“We’re creating credit score buildings that produce revenue, however by integrating measured quantities of Bitcoin, these loans take part in appreciation over time, providing advantages conventional fashions don’t present,” Hohns explained in a session on the Coin Stories Podcast.
Early offers exhibit the idea, with Battery Finance refinancing a $12.5 million multifamily property utilizing each the constructing itself and roughly 20 BTC as a part of a hybrid collateral bundle.
Borrowers acquire entry to capital with out triggering taxable events from selling crypto, whereas lenders acquire extra draw back safety.
Institutional-Grade Bitcoin Collateral
Unlike pure Bitcoin-backed loans, which stay experimental and area of interest, Newmarket’s mannequin is institutional-grade:
- It is totally underwritten
- Income-focused, and
- Legally structured for US regulatory compliance.
Bitcoin in these buildings is handled as a collateral complement slightly than a standalone fee methodology; mortgage and mortgage repayments stay in USD.
“Bitcoin provides flexibility and transparency to conventional lending, however the basis continues to be income-producing belongings,” Hohns stated. “It’s a bridge between digital shortage and traditional credit score threat frameworks.”
The strategy builds on a broader pattern of integrating real-world belongings (RWA) with digital holdings. In June 2025, federal agencies like the FHFA signaled in mid-2025 that crypto could be considered for mortgage qualification,
However, personal lenders like Newmarket Capital are transferring sooner, operationalizing hybrid collateral buildings whereas adhering to present regulatory frameworks.
Newmarket and Battery Finance’s work illustrates how Bitcoin and different cryptocurrencies can interface with TradFi as instruments to unlock new types of lending and credit score.
Still, challenges exist. BeInCrypto reported that regardless of Fannie Mae and Freddie Mac’s plans to accept Bitcoin as mortgage collateral, there’s a catch.
The Bitcoin should be held on regulated exchanges. Bitcoin in self-custody or personal wallets received’t be acknowledged.
This raises issues about monetary sovereignty and centralized management. Policy limits Bitcoin’s use in mortgage lending to custodial, state-visible platforms, excluding decentralized storage.
“This isn’t about adoption vs. resistance. It’s about adoption with circumstances. You can play— …however provided that your Bitcoin performs by their guidelines. Rules designed for management…As adoption deepens, stress will mount for lenders to acknowledge correctly held Bitcoin—not simply cash on an change…Eventually, the most safe type of cash will unlock the most versatile capital,” one consumer remarked.
Nevertheless, whereas this innovation will not be an answer to housing affordability, it represents a significant step towards mainstream adoption of crypto in real-world finance.
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