The US-based structured credit firm is pushing the boundaries of TradFi by integrating cryptocurrencies into real-world lending. Newmarket Capital, which manages nearly $3 billion in assets, has pioneered hybrid residential and commercial loans that use Bitcoin (BTC) as collateral alongside traditional real estate.
Its affiliate, Battery Finance, is leading the way in building financial structures that leverage digital assets to support credit without requiring borrowers to liquidate their holdings.
Sponsored Sponsored
Bitcoin will reshape mortgages and real-world lending
The initiative targets borrowers who are crypto asset holders, including tech-savvy millennials and Gen Z. This provides a route to financing that preserves the upside of your investment while allowing you to access traditional credit markets.
By combining income-producing real estate with Bitcoin, the company seeks to reduce volatility risk while offering new lending solutions to borrowers.
The model combines income-producing real estate, such as commercial real estate, with a portion of the borrower’s Bitcoin holdings as additional collateral, said Andrew Horns, founder and CEO of Newmarket Capital and Battery Finance.
Bitcoin is valued as part of an overall loan package, providing lenders with a liquid, divisible, and transparent asset, unlike real estate alone.
“We are building a credit structure that generates income, but by integrating measured amounts of Bitcoin, these loans increase in value over time and provide benefits not available in traditional models,” Horns explained in a session on the Coin Stories Podcast.
Early transactions are proving the concept, with Battery Finance refinancing a $12.5 million apartment complex using both the building itself and approximately 20 BTC as part of a hybrid collateral package.
Borrowers will be able to access capital without triggering tax events from selling cryptocurrencies, and lenders will have additional downside protection.
Sponsored Sponsored
Institutional grade Bitcoin collateral
Unlike pure Bitcoin-backed loans, which remain experimental and niche, Newmarket’s model is institutional-grade.
This insurance is fully underwritten with an emphasis on income and is legally structured to comply with U.S. regulations.
Bitcoin in these structures is treated as complementary collateral rather than a separate payment method. Mortgage and loan repayments remain in US dollars.
“Bitcoin brings flexibility and transparency to traditional lending, but the foundation is still an income-producing asset,” Horns said. “This is a bridge between digital scarcity and traditional credit risk frameworks.”
This approach builds on the broader trend of integrating real-world assets (RWA) and digital holdings. In June 2025, federal agencies such as the FHFA indicated that they may consider cryptocurrencies as qualifying for mortgage loans in mid-2025.
Sponsored Sponsored
However, private lenders such as Newmarket Capital are moving more quickly, operating hybrid collateral structures while adhering to existing regulatory frameworks.
Newmarket and Battery Finance’s research shows how Bitcoin and other cryptocurrencies can work with TradFi as tools to unlock new forms of lending and credit.
Still, challenges exist. BeInCrypto reported that despite Fannie Mae and Freddie Mac’s plans to accept Bitcoin as mortgage collateral, there is a catch.
Bitcoin must be held on a regulated exchange. Bitcoins in self-custody or personal wallets are not recognized.
Sponsored Sponsored
This raises concerns about financial sovereignty and centralized control. The policy limits the use of Bitcoin in mortgage lending to state-visible custodial platforms, with the exception of decentralized storage.
“This is not about adoption or resistance. It’s a conditional adoption. You can play — but only if your Bitcoin follows the rules. Rules are designed for control… As adoption increases, there will be increased pressure on lenders to recognize well-held Bitcoin, not just coins on exchanges… Ultimately, the safest form of money will free up the most flexible capital,” one user said.
Nevertheless, while this innovation is not a solution to housing affordability, it is a meaningful step towards mainstream adoption of cryptocurrencies in real-world finance.
