Crypto-Infused Lending: A $3 Billion Firm Innovates Mortgages
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Newmarket Capital, a structured-credit company managing nearly $3 billion in assets, is venturing into uncharted territory by integrating cryptocurrency into lending practices. The firm is developing hybrid mortgage and commercial loan solutions that incorporate Bitcoin as collateral, alongside traditional real estate.
Battery Finance, an affiliate of Newmarket, is at the forefront of this initiative. The firm aims to create financing solutions that allow borrowers to collateralize their loans with Bitcoin, eliminating the need to liquidate these digital assets.
This innovative approach is particularly aimed at cryptocurrency holders, especially younger borrowers from the Millennial and Gen Z demographics. By leveraging Bitcoin, the firm is not only preserving the potential for future gains but also facilitating access to conventional financial markets.
By merging income-generating properties, such as commercial real estate, with Bitcoin holdings, Newmarket seeks to provide a stable lending option that mitigates the risks associated with Bitcoin’s price fluctuations.
According to Andrew Hohns, Founder and CEO of both Newmarket Capital and Battery Finance, the model pairs income-producing assets with a portion of Bitcoin owned by the borrower, creating a stronger collateral package.
Bitcoin’s role in this setup is to enhance the overall value of the loan, as it is a liquid and transparent asset, unlike real estate, which can be less easily valued.
During a discussion on the Coin Stories Podcast, Hohns noted that their credit structures not only generate income but also allow for the appreciation of Bitcoin, offering advantages over traditional lending methods.
Initial transactions highlight the effectiveness of this model; for instance, Battery Finance recently refinanced a $12.5 million multifamily property using the building’s value along with around 20 BTC as part of the collateral.
This system enables borrowers to access funds without triggering tax implications tied to selling their crypto assets, while also providing lenders with a layer of security.
Newmarket’s strategy stands apart from pure Bitcoin-backed loans, which tend to be more experimental. Their framework is designed for institutional use and adheres to rigorous underwriting standards, focusing primarily on income generation.
In this context, Bitcoin serves as supplementary collateral rather than the primary currency for loan repayments, which are still conducted in USD.
Hohns expressed that incorporating Bitcoin enhances both flexibility and transparency in traditional lending practices, framing it as a bridge connecting digital assets with established credit models.
The effort aligns with a broader movement towards integrating real-world assets with digital resources. In June 2025, federal agencies indicated that cryptocurrencies might factor into mortgage qualification processes.
However, private firms like Newmarket are advancing this concept more swiftly, implementing hybrid collateral arrangements while staying compliant with existing regulations.
Despite this progress, certain hurdles remain. Reports indicate that while agencies like Fannie Mae and Freddie Mac are considering Bitcoin for mortgage collateral, they require that these assets be held on regulated exchanges, excluding self-custody wallets.
This raises significant questions about individual financial autonomy, as the current policies restrict Bitcoin’s utility in mortgage lending to assets that are visible on centralized platforms.
Critics have highlighted concerns about the implications for personal ownership and control over assets. They argue that while adoption is encouraged, it comes with restrictions that limit the scope of who can utilize Bitcoin in this sector.
Nevertheless, the introduction of these innovative lending solutions, while not directly addressing the housing affordability crisis, marks a significant step toward embracing cryptocurrency within mainstream finance.
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