Newrez to Accept BTC, ETH and Spot Crypto ETFs as Qualifying Mortgage Assets
Major U.S. mortgage lender Newrez will begin accepting cryptocurrency holdings as qualifying assets for certain mortgage products starting March 15, 2025. Recognized assets include Bitcoin (BTC), Ether (ETH), spot crypto exchange-traded funds (ETFs) backed by those tokens, and U.S. dollar–pegged stablecoins. Eligible crypto must be held at U.S.-regulated exchanges, fintech platforms, brokerages or nationally chartered banks; decentralized wallets and most international platforms are excluded. Underwriting will apply volatility adjustments to crypto valuations (discounts, multi-month averages, stress tests) and require documentation, custody verification and enhanced staff training. Borrowers still must pay closing costs and make loan repayments in U.S. dollars. Newrez began collaborating with exchanges and fintech partners in 2023 and cites demographic trends — roughly 45% of Gen Z and Millennials hold crypto — plus regulatory shifts (SEC approval of spot BTC/ETH ETFs and clarified custody guidance) as drivers of the policy. Analysts expect the change could modestly increase mortgage qualification rates among younger crypto holders without forcing liquidation, but warn of operational, valuation and liquidity risks. The policy may set a precedent for other lenders if broadly adopted, potentially widening crypto’s role in mainstream credit products.
Bullish
Accepting BTC, ETH and spot crypto ETFs as qualifying mortgage assets lowers a structural barrier between crypto holdings and mainstream financial services. For BTC and ETH specifically, the announcement increases utility and on‑ramp demand by enabling holders to use these assets to qualify for mortgages without mandatory liquidation. Short-term effects: modestly bullish — increased buying interest or reduced selling pressure from holders who can now prove assets without converting them, and potential ETF inflows remain supportive. Volatility discounts and custody restrictions will limit immediate large-scale mortgage collateralization, so price impact is likely moderate. Long-term effects: more material — if other lenders follow, demand for on-chain assets and custody services could rise and market confidence in institutional adoption would strengthen, supporting higher valuations. Risks (volatility, liquidity, operational and regulatory) temper the upside and may cap the magnitude of price moves.