
Rate launches RateFi allowing verified crypto to qualify in mortgage underwriting
Rate debuts RateFi — crypto holdings enter mortgage underwriting
Rate has introduced RateFi, a lending product that permits certain verified crypto balances to be counted toward borrower qualification inside the lender’s existing non‑qualified mortgage framework.
Underwriters will accept a curated list of large‑cap tokens and major dollar‑pegged stablecoins only after they pass a proprietary valuation that weights market price, liquidity and token‑specific volatility.
Borrowers must hold assets with approved custodians or centralized exchanges and provide periodic statements demonstrating seasoning; funds intended for down payments or closing costs still require conversion to fiat at settlement.
RateFi integrates standard AML and KYC checks into the digital mortgage flow and is delivered through Rate’s existing origination platform rather than as an isolated product.
Rate frames the product as a way to avoid tax‑triggering sales while preserving traditional risk controls, arguing that documented seasoning and custodial attestations permit underwriters to treat verified crypto as a reserve metric instead of forcing immediate liquidation.
This initiative arrives amid regulatory and legislative signals over the past year that have opened a narrow window for conditional accommodation of digital assets in mortgage risk models.
Rate’s approach should be read alongside distinct market offerings that use a different risk architecture: for example, Milo — a niche lender that has grown into six‑figure origination volume and executed a $12 million single transaction — offers pledge‑backed mortgages where customers pledge crypto equal to full property value and the lender applies conservative credit adjustments rather than counting those holdings as qualifying reserves.
Milo’s design preserves token ownership for clients, tolerates larger market swings through overcollateralization and explicit downside buffers, and avoids forced property forfeiture by prioritizing payment continuity; it also supports larger loan sizes (reported up to $25 million), operates in multiple states, and permits institutional custody or self‑custody routes.
The two models illuminate a practical split in market strategy: RateFi attempts to fold verified digital balances into conventional borrower qualification (subject to custody and seasoning constraints), while pledge‑backed lenders sidestep qualification rules by securitizing assets as collateral and engineering margin/adjustment mechanics to manage volatility.
Operationally, RateFi heightens demand for compliant custodians, valuation services and attestation workflows, whereas pledge models emphasize collateral management, margin monitoring and foreclosure‑avoidance protocols.
Investor acceptance will be decisive: counting crypto as reserves requires investor comfort with token valuation and liquidity modeling inside credit pools, while collateralized approaches may find earlier traction with investors who prefer overcollateralized pockets that isolate token price risk from borrower credit profiles.
Adoption across originators and investors will hinge on which tradeoffs the market and regulators prefer — integration of crypto into underwriting versus segregation of crypto risk via collateral structures — and both approaches are likely to coexist while standards, custody options and stress‑testing practices mature.
Read Our Expert Analysis
Create an account or login for free to unlock our expert analysis and key takeaways for this development.
By continuing, you agree to receive marketing communications and our weekly newsletter. You can opt-out at any time.
Recommended for you
Milo hits $100M originations in crypto-collateral home loans, closes $12M deal
Milo has reached more than $100 million in home loan originations and completed its largest single mortgage at $12 million, offering loans that let clients use crypto as collateral without selling holdings. The company operates under mortgage licenses across ten U.S. states, structures conservative loss-absorption terms to avoid borrower displacement during major crypto drawdowns, and partners with custodial services for asset safekeeping.
Dubai insurer launches regulated crypto wallet to accept premiums and pay claims in bitcoin
Dubai Insurance has partnered with Standard Chartered’s custody arm to give policyholders a regulated crypto wallet that can receive claims and accept premium payments in digital assets. The move signals a strategic step by a traditional insurer to integrate on-chain payments under custody and compliance frameworks popularizing crypto use in mainstream financial services.

ICE launches CoinDesk‑linked crypto futures and signals move into DeFi rate contracts
Intercontinental Exchange has begun trading U.S. dollar cash‑settled futures tied to seven CoinDesk benchmarks and is proposing a one‑month USDC overnight‑rate future; industry panels say such regulated derivatives, multi‑token indices and stablecoin‑backed overnight products are central to institutional adoption but will amplify the need for technical standards, harmonized custody/margin rules and careful regulatory sequencing across jurisdictions.

Federal Reserve Proposes Treating Crypto as Its Own Risk Class for Derivatives Margins
A Federal Reserve staff paper recommends creating a separate asset-class treatment for cryptocurrencies when calculating initial margin on uncleared derivatives, arguing their price behavior differs substantially from traditional categories. The proposal arrives amid broader Fed work on crypto access and market structure, underscoring the need for interagency and market‑infrastructure alignment to make bespoke margining effective.
Regulatory clarity and derivatives draw TradFi deeper into crypto
Panelists at Consensus Hong Kong said clearer rules and a new generation of derivatives and tokenized products are making crypto a credible institutional allocation. Regional rulemaking — from Hong Kong’s sequenced authorizations to U.S. custody guidance and Fed deliberations — plus product launches like stablecoin-rate futures are lowering practical barriers to TradFi involvement.

Citrea launches mainnet and ctUSD to bring DeFi primitives onto Bitcoin
Citrea, a Bitcoin-focused layer‑2 developed by Chainway Labs and backed by Founders Fund and Galaxy, has launched its mainnet and introduced a USD-pegged stablecoin, ctUSD, to enable BTC-native lending and structured finance. The network combines an EVM-compatible zk-rollup model with on‑chain settlement to anchor transaction data to Bitcoin and has assembled partners for lending, product development, and stablecoin issuance.
ProShares launches KRYP, first U.S.-listed ETF tracking the CoinDesk 20 crypto index
ProShares listed KRYP, an ETF that tracks the CoinDesk 20 Index to give investors basket exposure to the 20 largest liquid cryptocurrencies. The fund uses market-cap weighting with caps and quarterly rebalances to limit single-asset concentration and exclude certain token types.
Sovcombank launches bitcoin-backed lending for Russian clients
Sovcombank has rolled out a program to provide loans secured by legally held bitcoin to individuals and companies, positioning itself at the forefront of Russian banks offering crypto-collateralized credit. The product arrives amid evolving national rules for mining and crypto markets and follows a recent Sberbank pilot, highlighting growing bank interest in converting digital holdings into working capital while managing regulatory and volatility risks.