Crypto

Crypto Demand Hits Underwriting

Published

3 months ago

February 18, 2026

A growing share of young, affluent investors now hold part of their net worth in cryptocurrency — and many are reluctant to liquidate those positions to buy a home. Non-QM lenders are beginning to adjust.

Newrez has formally integrated eligible cryptocurrency holdings into its non-agency underwriting framework, allowing borrowers to use digital assets for qualification without selling them. The move places crypto alongside traditional securities accounts within the company’s Smart Series product suite, reflecting a shift in how borrowers structure their wealth.

Other non-QM lenders are moving in the same direction. Newfi Lending recently expanded its Sequoia DSCR program to allow borrowers to count a portion of Bitcoin and Ethereum toward reserve requirements without liquidation. Under Newfi’s guidelines, up to 25% of Bitcoin and Ethereum held in a Coinbase account and up to 50% of crypto ETFs or mutual funds held at institutions such as Fidelity or Schwab may be applied toward reserves, with total crypto capped at 50% of required reserves.

How It Works

Under the updated framework, eligible cryptocurrency holdings may be considered as part of the asset analysis when qualifying a borrower. Crypto is not accepted as currency for down payments, and borrowers must still close in U.S. dollars.

President of Newrez, Baron Silverstein

“The suitability is the same,” said Baron Silverstein, president of Newrez. “All we’re doing is accepting crypto assets to qualify, so it would be no different from looking at somebody’s securities account.”

Silverstein described the rollout as a measured first step within the non-agency channel, structured around established underwriting discipline rather than a new risk model. “We felt that, at least in the non-agency space, that this was an appropriate first move for us,” he said.

He noted that the approach mirrors how the GSEs treat other volatile assets held in securities accounts. “The GSEs are very prescriptive about the haircuts that they allow or require for assets in an individual’s securities portfolio account,” Silverstein said, pointing to holdings such as gold futures that also fluctuate in value.

Newrez evaluated crypto using a similar framework. Silverstein emphasized that the program does not alter core underwriting standards. “When you benchmark it in that manner, it really just becomes evaluating a price regression analysis and then what haircuts you feel are appropriate from a risk perspective on consumer-owned crypto,” he said.

Why Now?

Silverstein said demand among younger investors, ages 18 to 40, helped drive the decision, noting that borrower balance sheets increasingly include digital assets. “When we have conversations with clients — you hear it more and more — customers say they have crypto as part of their investment strategy,” he said.

The company’s press release cited the expanding global cryptocurrency market and noted that an estimated 45% of Gen Z and Millennial investors (also considered future homebuyers) own crypto.

Survey data from Coinbase shows nearly half of young investors own cryptocurrencies and rank crypto second only to real estate as a top growth opportunity. A YouGov investment trends report found Millennial and Gen Z investors are more likely to own crypto than a retirement account and are as likely to own cryptocurrency as they are to own real estate.

“My kids own crypto; I don’t,” Silverstein said. “I’m an old dog, and they have grown up in the digital age. They’re a lot more comfortable with the digital experience and using digital tools with what they do every single day.”

At the same time, Silverstein acknowledged that traditional agency programs have not yet adapted to recognize crypto assets for mortgage qualification. He framed Newrez’s move as a response to generational change.

“I think that the new customer is likely going to have crypto as part of their investment,” he continued. “That’s why I felt like this was a really good first step into the approval process for when they decide to buy a home.”

What It Means for Loan Officers

For loan officers, the update expands the range of borrowers who may qualify without restructuring their balance sheets.

“I think this will be a really big benefit for loan officers to support their customers,” Silverstein said. “If a customer comes to them and says, ‘look, 50% of my assets are in crypto,’ then they absolutely will have an option to say, ‘yeah, that can work for this type of mortgage.’”

Reaching those borrowers may require different referral strategies. A November survey from crypto infrastructure company Zerohash found that 35% of wealthy young Americans earning between $100,000 and $1 million annually had moved money away from advisors who do not offer crypto exposure. More than half of those reallocations involved between $250,000 and $1 million. The study found many younger investors rely on friends, family and online platforms such as YouTube for financial information.

Silverstein said he expects both advisors and competing lenders to adapt. “I would be surprised if you don’t see others follow suit,” he said. “That’s just my guidance and gauge on how competitive our industry is.”

The Bottom Line

Crypto is no longer a fringe conversation. For a growing segment of borrowers, it’s a meaningful line item on the balance sheet.

For loan officers, that shifts the initial discovery conversation. Instead of asking whether assets exist, the better question may be where they are held — brokerage account, retirement fund, or digital wallet. Borrowers who appear liquidity-constrained on paper may be asset-strong, but unwilling to trigger a taxable event or exit a volatile position to qualify.

Non-QM lenders are beginning to structure policy around that reality. Originators who understand which investors will recognize crypto, how haircuts are applied, and where caps apply can turn what looks like a declined file into a viable approval.

The opportunity remains limited by volatility and investor overlays. But as more wealth migrates into digital assets, the ability to navigate crypto within underwriting guidelines may become a competitive advantage rather than a niche skill.

Crypto

ADI Foundation and Settlemint Launch ADGM Tokenization Rail for $30.9B RWAs

Published

6 hours ago

May 14, 2026

Press Room

ADI Foundation and Settlemint Launch ADGM Tokenization Rail for .9B RWAs

Integrated Infrastructure for Institutional Adoption

ADI Foundation and Settlemint announced a partnership on May 13 to launch a new digital securities infrastructure on the ADI Chain, aiming to streamline the tokenization of assets within the Abu Dhabi Global Market (ADGM) regulatory framework.

The collaboration integrates ADI Foundation’s compliance-ready Layer-2 blockchain with Settlemint’s digital asset lifecycle platform (DALP). The combined system is designed to handle the entire lifespan of a digital security, from initial token creation and on-chain recording to post-trade servicing and management.

The move addresses a primary hurdle for institutional investors: the difficulty of coordinating issuance, trading, settlement, and custody across fragmented jurisdictions. By providing an integrated architecture, the partners aim to offer a unified pathway for institutions to move traditional assets onto the blockchain.

“The future of investment and trading will not only be digitized, but also available 24 hours a day, 7 days a week,” said Andrey Lazorenko, CEO of ADI Foundation. “Our partnership brings together market infrastructure, institutional-grade blockchain, and a digital asset lifecycle platform to tokenize equities and trade them on secondary platforms.”

According to a media statement, the platform utilizes Settlemint’s implementation of the ERC-3643 standard—a protocol specifically designed for security tokens to ensure compliance with regulatory requirements. While the partnership is initially focusing on equity tokenization, the infrastructure is built to support a variety of other tokenized securities and financial instruments, pending regulatory approval.

The announcement comes as institutional interest in real-world assets ( RWAs) on-chain continues to accelerate. According to data from RWA.xyz, tokenized RWAs currently represent approximately $30.92 billion in on-chain value, with tokenized U.S. Treasuries accounting for roughly $15.20 billion of that total. Market analysts expect this trend to scale significantly. A 2026 analysis by BCG suggests the digital asset market could surge from $0.6 trillion in 2025 to $18.9 trillion by 2033.

Matthew Van Niekerk, co-founder and president of Settlemint, characterized the partnership as a “blueprint” for the broader financial industry.

“This partnership proves that regulated, multi-asset tokenization at national scale on public blockchains is not just feasible, but live,” Van Niekerk said. He added that the infrastructure is intended to be a model that central securities depositories (CSDs), exchanges, and clearing houses can adopt to integrate digital assets into existing operations.

Crypto

BlackRock COO: Cryptocurrency Demand Surpasses Firm’s Expectations, Signaling a Shift in Value

Published

18 hours ago

May 13, 2026

Press Room

BlackRock COO: Cryptocurrency Demand Surpasses Firm’s Expectations, Signaling a Shift in Value

BlackRock Chief Operating Officer Rob Goldstein revealed that demand for cryptocurrency has significantly exceeded the firm’s initial projections, marking a notable shift in institutional sentiment toward digital assets. Speaking during a Binance online stream, Goldstein addressed the market’s reception of BlackRock’s spot Bitcoin exchange-traded fund (ETF), IBIT, and outlined the asset manager’s broader strategic outlook on blockchain-based finance.

Demand Driven by Value Proposition, Not Speculation

Goldstein emphasized that the global demand for IBIT was stronger than anticipated, describing the interest not as fleeting speculative enthusiasm but as a recognition of a new value proposition rooted in emerging technology. He noted that investors are increasingly viewing cryptocurrency as a distinct asset class with potential for long-term portfolio diversification, rather than a short-term trading vehicle. This perspective aligns with BlackRock’s broader push to integrate digital assets into traditional investment frameworks.

Tokenization and the Future of Capital Markets

Goldstein predicted that the tokenization of capital market instruments remains in its early stages, with future growth expected to be measured in multiples rather than incremental percentages. He argued that blockchain infrastructure could fundamentally reshape how assets are issued, traded, and settled, reducing friction and increasing transparency. This view is consistent with growing industry interest in real-world asset (RWA) tokenization, a trend that major financial institutions are beginning to explore.

AI Agents and Digital Rail Transactions

In a forward-looking comment, Goldstein suggested that artificial intelligence agents will eventually conduct transactions directly via digital rails, or blockchain infrastructure, rather than logging into traditional bank accounts. This vision points to a future where automated systems interact with decentralized finance protocols, potentially streamlining operations across supply chains, payments, and asset management. While still conceptual, the statement underscores BlackRock’s attention to the convergence of AI and blockchain technologies.

The Education Gap Remains a Key Obstacle

Goldstein identified the primary barrier to broader adoption as a lack of investor education regarding the technical aspects of virtual assets and efficient portfolio allocation. Many institutional and retail investors remain uncertain about how to evaluate cryptocurrencies, assess risks, and integrate them into existing investment strategies. BlackRock’s emphasis on education suggests that the firm sees informed participation as critical to sustainable market growth.

Conclusion

BlackRock’s acknowledgment that cryptocurrency demand has exceeded expectations carries significant weight, given the firm’s status as the world’s largest asset manager with over $10 trillion in assets under management. Goldstein’s comments reflect a maturing institutional perspective that views digital assets not as a passing trend but as a structural evolution in finance. For investors, the key takeaway is that major financial players are moving beyond skepticism and actively building infrastructure for a tokenized future, even as educational gaps persist.

FAQs

Q1: What did BlackRock’s COO say about cryptocurrency demand?
Rob Goldstein stated that demand for cryptocurrency, particularly through BlackRock’s IBIT Bitcoin ETF, has exceeded the firm’s expectations, driven by a recognition of its value as an emerging technology rather than mere speculation.

Q2: What is BlackRock’s view on tokenization?
Goldstein described tokenization of capital market tools as still in its infancy, with future growth expected to be exponential. He believes blockchain infrastructure will play a key role in transforming how assets are managed and traded.

Q3: What is the biggest obstacle to cryptocurrency adoption according to BlackRock?
The main challenge is a lack of investor education on the technical aspects of virtual assets and how to allocate them effectively within a portfolio, according to Goldstein.

Crypto

MEXC Commits to 1,000 BTC Purchase as Guardian Fund Targets $500M Expansion

Published

1 day ago

May 13, 2026

Press Room

MEXC Commits to 1,000 BTC Purchase as Guardian Fund Targets 0M Expansion

Key Takeaways

BTC and USDT to Serve as Dual Reserve System for Market Stability

Crypto exchange MEXC is deepening its focus on reserve strength and user protection, announcing plans to expand its Guardian Fund fivefold to $500 million and acquire 1,000 bitcoin as part of a broader risk management strategy.

The exchange said the initiative will be rolled out over the next two years and is designed to create a dual-reserve structure combining liquid stablecoin holdings with long-term BTC reserves. The framework is intended to bolster platform stability and improve resilience during periods of market stress.

The announcement comes as MEXC continues to attract new capital and users. According to data from Defillama, the exchange recorded $271.6 million in net inflows over the past month through May 11, reflecting increased trading activity and participation across global markets.

Under the revised structure, the Guardian Fund will continue to hold significant USDT reserves to ensure immediate liquidity and operational flexibility. The addition of bitcoin is intended to provide a longer-term store of value capable of preserving purchasing power across market cycles.

Transparency Remains Key for MEXC

MEXC said the strategy is part of a disciplined reserve management approach rather than a reaction to short-term volatility. The company framed the expansion as an effort to build infrastructure comparable to institutional-grade financial safeguards increasingly expected in the digital asset industry.

“Trust has to be capitalized, not just claimed. The expansion of the Guardian Fund and the addition of bitcoin reserves reflect our commitment to building protection infrastructure that helps users access infinite opportunities with greater confidence,” CEO Vugar Usi said in a statement.

The exchange also emphasized transparency. Wallet addresses tied to the Guardian Fund’s USDT and bitcoin holdings have been disclosed publicly, allowing users to verify reserve balances on-chain in real time. The move highlights a broader trend among large trading platforms seeking to differentiate themselves through stronger balance sheets and more visible proof-of-reserves mechanisms.

For MEXC, the Guardian Fund expansion forms part of a wider push to position itself as a global platform capable of supporting long-term growth. The company said the initiative aligns with its broader strategy of improving transparency, strengthening risk management, and protecting users during periods of heightened market uncertainty.