Cryptocurrency-backed mortgages are booming in response to the U.S. housing crisis, offering new solutions

The U.S. housing crisis has sparked a boom in crypto-backed mortgages as home prices hit a record high in 2025. The housing bubble fears are fueled by unprecedented affordability challenges with historically low inventory levels.

Cryptocurrency is emerging as a solution to the housing crisis, offering new opportunities for homeownership and investment. Tokenized real estate and crypto-backed loans are changing access points, allowing average investors to co-own properties without hefty down payments.

JPMorgan Chase’s acceptance of Bitcoin ETFs as collateral for loans may lead to more crypto-backed lending on Wall Street. Organizations like Ledn and Milo are pioneering the crypto mortgage movement, with Milo reporting over $65 million in crypto loan mortgages.

Maple Finance has surpassed $1 billion in assets under management, becoming DeFi’s premier institutional lending marketplace. U.S. regulators have sparked a “Cambrian explosion” in Bitcoin-backed lending, increasing efficiencies with blockchain-based smart contracts automating loan terms.

While cryptocurrency as collateral for a mortgage offers new opportunities, it comes with risks like extreme pricing volatility and over-collateralization requirements. Rates are often higher than conventional mortgages, and regulatory uncertainty poses challenges for borrowers.

As the housing crisis worsens, the integration of traditional finance and blockchain innovation could be a valuable tool in addressing the problem. The intersection of these two worlds may offer solutions to the affordability challenges facing the real estate market.

Read more at Yahoo Finance: U.S. housing crisis sparks boom in crypto-backed mortgages