US mortgage lender Rate has launched a nationwide program allowing qualified borrowers to use verified cryptocurrency holdings as part of mortgage underwriting, without requiring them to liquidate their digital assets. The product, called RateFi, operates within the firm’s non-qualified mortgage framework and treats select crypto holdings as qualifying reserves and, in certain cases, a potential income source.
The underwriting model applies a proprietary valuation framework that considers market pricing, liquidity, and asset-specific volatility while maintaining traditional risk standards. Borrowers must hold eligible assets with approved custodians or centralized exchanges and provide documentation such as account statements and proof of ownership. However, digital assets used for down payments or closing costs must still be converted into cash, aligning the product with existing settlement and regulatory practices.
Institutional Shift Toward Digital Asset Recognition
The rollout reflects a broader institutional reassessment of digital wealth as more than 10% of Americans now report holding crypto, according to company estimates. Traditional mortgage programs typically require liquidation of crypto holdings, which can trigger taxable events and reduce borrowing flexibility, particularly for younger investors with a higher share of wealth in digital assets.
Rate’s approach also incorporates standard AML and KYC procedures through its existing digital mortgage infrastructure, signaling an effort to balance innovation with regulatory compliance. The lender indicated that only large-cap, high-liquidity cryptocurrencies and major dollar-backed stablecoins will be considered, highlighting a risk-managed entry point rather than broad asset acceptance.
Housing Affordability and Competitive Lending Landscape
The initiative comes amid persistent housing affordability pressures in the United States, where younger homebuyers face higher borrowing costs and limited traditional pathways to ownership. Policymakers and regulators have increasingly explored whether cryptocurrency could be treated as a reserve asset in mortgage risk assessments, including recent discussions involving government-sponsored mortgage entities and proposed legislative frameworks.
Competitively, the program places Rate alongside a niche but growing group of lenders experimenting with crypto-linked real estate financing, including firms offering Bitcoin-backed or digital asset-collateralized loans. As financial institutions evaluate new capital sources and borrower profiles, integrating crypto holdings into underwriting may serve as a bridge between digital asset markets and traditional housing finance, while still constrained by prudential risk standards and evolving regulatory oversight.
