Crypto Mortgages Explained: How To Finance A Home With Crypto

The overall crypto market cap has so far reached $3.3trillion in 2025, and experts predict it could exceed $8trn by the end of 2026. Digital assets are now becoming increasingly integrated into traditional finance. With the success of ETFs and on-ramp payment solutions, assets like Bitcoin are increasingly being leveraged into traditional financial activities.

As Bitcoin’s store value is now widely recognized, more users are seeking how to leverage such assets for their regular financial needs. Crypto mortgages and loans are now a key part of the digital asset conversation.

So, what are crypto mortgages? Are crypto-based financing options feasible? Let’s discuss.

What are crypto mortgages?

Crypto mortgages let you use digital assets to secure a home loan. You deposit your crypto as collateral, and a smart contract locks it in. Lenders set a Loan-to-Value ratio based on your crypto’s market value.

Users can get a loan in fiat currency or stablecoins while keeping their cryptocurrencies on the blockchain. If their crypto value drops, the lender may require additional collateral or partial repayment. Providers like Coinbase and Unchained Capital use blockchain for transparent and secure operations.

How do crypto mortgages work?

Here’s a simple breakdown of how crypto mortgages work in general:

• Pick a lender that offers crypto mortgages.
• Apply with your details and provide your crypto asset information.
• Lock your crypto as collateral using a smart contract.
• The lender calculates your collateral’s value and sets a Loan-to-Value ratio.
• Lender issues a loan in fiat currency or stablecoins.
• You repay the loan according to the agreed terms.
• Once you clear your debt, the smart contract unlocks your crypto.
• If your crypto’s value drops, you may need to add more collateral.

Difference between crypto and traditional mortgages

Crypto mortgages use digital assets as collateral, while traditional mortgages rely on cash assets and credit. Crypto deals with blockchain and smart contracts. Traditional loans need credit checks and appraisals.

Also, crypto mortgages run on automated protocols that secure and release collateral based on smart contract rules. Traditional ones depend on banks and paperwork, which slows the process. Crypto versions offer fast, automated, and transparent transactions.

Here’s a detailed comparison of both financing methods:

Pros and cons of crypto mortgages…

Pros

• Speed: Smart contracts speed up the approval process.
• Transparency: Blockchain records provide clear, real-time tracking.
• Automation: The system reduces manual intervention.
• Flexibility: You can leverage your crypto assets without liquidating them.
• Decentralization: It cuts out traditional banking intermediaries.

Cons

• Volatility: Price swings in crypto may trigger collateral calls.
• Regulatory uncertainty: Legal frameworks for crypto remain in development.
• Liquidity challenges: Some digital assets may be hard to liquidate quickly.
• Technical complexity: Managing smart contracts and digital wallets requires specific expertise.
• Market risk: Falling crypto values can lead to forced partial repayments.

Top crypto mortgage platforms in 2025:

1. Unchained Capital: Based in Austin, Texas, Unchained Capital offers Bitcoin-backed loans to individuals and businesses. The platform utilizes dedicated BTC multisig vaults to ensure collateral security. As of recent data, the platform offers a minimum APR of 12.58% and an estimated loan-to-value (LTV) ratio of around 40%. Currently, their services are available only to U.S. customers.
2. Coinbase: In January 2025, Coinbase introduced a service allowing users to secure loans against their Bitcoin holdings. Users can borrow up to $100,000 in USD Coin (USDC) without a credit score requirement, with the loan amount based on the Bitcoin offered as collateral. This service is integrated within the Coinbase app, with loan servicing managed by the decentralized finance platform Morpho on the Coinbase-created Base blockchain.

How to choose the best crypto-backed mortgage option

Assess platform reputation

Start by researching platforms with a track record in crypto mortgages. Look at customer reviews, expert analyses, and industry reports. Check if the platform operates under clear regulatory guidelines. Focus on established names that adhere to security protocols and offer transparent operations.

Evaluate smart contract security

Examine how the platform implements smart contracts. Look for code audits and third-party security reviews. Verify if the smart contracts include safeguards against common vulnerabilities like reentrancy and front-running. Platforms with robust smart contract designs reduce risk during collateral management and loan disbursement.

Understand collateral management

Study how each platform handles collateral. Confirm that they offer secure wallet integrations and transparent tracking of collateral deposits. Check if the platform provides real-time monitoring of collateral values and clear procedures for margin calls if asset values decline. A reliable mechanism ensures prompt notifications and proper risk management.

Compare loan terms and fees

Review loan-to-value ratios, interest rates, and associated fees. Analyze how these factors adjust with crypto market volatility. Some platforms offer flexible terms to manage fluctuations, while others might require strict collateral maintenance. A clear fee structure without hidden charges supports informed decisions.

Examine liquidity and market integration

Investigate the platform’s liquidity options. Determine how quickly you can access funds and whether loans disburse in fiat or stablecoins. Check if the platform integrates with leading crypto exchanges for accurate market pricing. A strong liquidity framework ensures efficient transactions even during market stress.

Review regulatory compliance and support

Ensure the platform complies with evolving regulatory standards. Look for platforms that engage with financial authorities and provide customer support for regulatory queries. Robust compliance frameworks provide an additional layer of security.

Are crypto mortgages legal?

As of February 2025, the legality of crypto mortgages varies by jurisdiction. In the United States, while no federal laws explicitly prohibit crypto-backed mortgages, the regulatory environment remains complex and is subject to change. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) oversee aspects of cryptocurrency use, and their regulations can impact crypto mortgage offerings. Recent developments, such as the appointment of Paul Atkins as SEC chairperson by the Trump administration, indicate a potential shift toward more crypto-friendly policies.

In the United Kingdom, the regulatory framework for crypto mortgages is still evolving. While cryptocurrencies are not banned, their integration into traditional financial products like mortgages is approached cautiously. The Financial Conduct Authority (FCA) has issued warnings about the risks associated with crypto assets, and lenders may have specific policies regarding their acceptance. FCA-approved crypto-mortgage brokers exist, such as Enness Global.

Given the rapidly changing regulatory requirements, it’s essential to consult with financial and legal professionals in your jurisdiction to understand the current legality and implications of engaging in crypto mortgage transactions.

1. 01.

   Can I buy a house with crypto loans?

   

   Yes, purchasing a house using crypto-backed loans is possible. Several platforms offer crypto-backed mortgages, allowing you to leverage your digital assets as collateral to secure a loan for real estate purchases. This approach enables you to retain ownership of your crypto while diversifying into property investments.

2. 02.

   Are crypto mortgages legal?

   

   The legality of crypto mortgages varies by jurisdiction and is continually evolving. In the US, for example, while no federal laws explicitly prohibit crypto-backed mortgages, regulatory bodies like Freddie Mac have specific guidelines regarding the use of cryptocurrency in mortgage transactions. It’s essential to consult with legal and financial professionals in your area to understand the current regulations and ensure compliance when considering a crypto-backed mortgage.