Crypto becomes collateral: Opportunity or new challenge?
The fact that Newrez LLC allows the use of crypto to approve home loans without requiring users to transfer assets is a bold move. This shows that digital assets have officially entered the mainstream real estate market in the U.S. Instead of having to "sell short", investors today can leverage the value of their portfolios to demonstrate financial capability to large lenders.
However, from a cautious perspective, estimating income based on a volatile market requires extremely stringent risk management from the lending entity. Newrez is directly targeting the younger customer segment, tech-savvy individuals who own a large amount of digital assets. While this is a significant liquidity support, investors still need to have contingency plans for price fluctuations. In an era where crypto increasingly becomes a type of collateral, holding highly liquid and reputable currencies within the Binance ecosystem will give you a significant advantage in any future lending requests. $BTC
