A US company specializing in structured credit is pushing the boundaries of TradFi by integrating crypto into real-world lending. Newmarket Capital, which manages nearly $3 billion in assets, is pioneering hybrid mortgage and commercial loans that use Bitcoin (BTC) alongside the more traditional real estate sector as collateral.
Its affiliate, Battery Finance, is leading the change in creating financial structures that leverage digital assets to support credit without requiring borrowers to liquidate their holdings.
Bitcoin will transform mortgages and lending on real-world assets
The initiative targets crypto-asset holders, including tech-savvy Millennials and Gen Z. It offers a solution for obtaining financing without sacrificing the earning potential of investments while also allowing access to traditional credit markets.
By combining income-generating properties with Bitcoin, the company aims to mitigate the risk of volatility by offering borrowers an innovative lending solution.
According to Andrew Hohns, founder and CEO of Newmarket Capital and Battery Finance, the model envisions income-generating properties, such as commercial real estate, being paired with a percentage of the Bitcoin held by the borrower as additional collateral.
Bitcoin is valued as an integral part of the loan package, providing lenders with a liquid, divisible, and transparent asset, something that real estate alone does not guarantee.
“We are creating credit structures that generate income, but by integrating measured amounts of Bitcoin, these loans potentially participate in value appreciation over time, offering advantages that traditional models do not provide,” Hohns explained during an episode of the Coin Stories podcast.
The first agreements demonstrate the validity of the concept: Battery Finance refinanced a multifamily property worth $12.5 million using both the building itself and about 20 BTC as part of the hybrid collateral.
Borrowers access capital without generating tax events from the sale of crypto, while lenders gain additional protection from downside risk.
Institutional-grade Bitcoin collateral
Unlike loans secured only by Bitcoin, still experimental and niche, the Newmarket model is recognized at an institutional level:
It is fully subscribed
Income-focused, and
Legally structured in compliance with US regulations.
In these structures, Bitcoin is treated as a complement to collateral and not as an independent payment method; mortgage and loan repayments remain in dollars.
“Bitcoin adds flexibility and transparency to traditional lending, but the foundation is always represented by income-generating assets,” said Hohns. “It is a bridge between digital scarcity and conventional credit risk models.”
This approach fits into a broader trend of integrating real-world assets (RWA) with digital assets. In June 2025, federal agencies like the FHFA indicated mid-2025 that crypto could be considered for qualification for mortgage loans.
However, private lenders like Newmarket Capital are moving faster, making hybrid collateral structures operational while complying with existing regulatory frameworks.
The activities of Newmarket and Battery Finance demonstrate how Bitcoin and other cryptocurrencies can interface with TradFi and serve as a tool capable of unlocking new forms of lending and credit.
However, there are still challenges. BeInCrypto reported that, despite Fannie Mae and Freddie Mac's plans to accept Bitcoin as collateral for mortgages, there is a condition.
Bitcoin must be held on regulated exchanges. Bitcoin in self-custody or in private wallets will not be recognized.
This raises concerns regarding financial sovereignty and centralized control. Policies limit the use of Bitcoin for mortgages to custodian platforms visible to the State, excluding decentralized storage.
“It is not about adoption versus resistance. It is about adoption with conditions. You can participate… but only if your Bitcoin meets their rules. Rules designed for control… The more adoption grows, the more pressure there will be on lenders to recognize Bitcoin held appropriately, not just coins deposited on an exchange… Ultimately, the safest form of money will unlock the most flexible capital,” commented a user on X.
Nevertheless, although this innovation is not a solution to housing accessibility, it represents an important step toward the mainstream adoption of crypto in real finance.
