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A US-based structured lending company is pushing the boundaries of traditional finance by integrating cryptocurrencies into real-world lending. Newmarket Capital manages approximately $3 billion in assets and is a pioneer in mortgage and commercial loan hybrids that leverage Bitcoin (BTC) alongside traditional real estate as collateral.
Its subsidiary, Battery Finance, is leading efforts to create financial structures that leverage digital assets to support credit without borrowers needing to liquidate assets.
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Bitcoin is reshaping brick-and-mortar mortgages and loans
The initiative is aimed at borrowers who hold crypto assets, including tech-savvy millennials and Generation Z. It provides a path to financing that maintains the completion of the investment while allowing access to traditional credit markets.
By integrating income-producing real estate with Bitcoin, the company seeks to reduce the risk of volatility while offering borrowers an innovative loan solution.
According to Andrew Hones, founder and CEO of New Market Capital and Barrie Finance, the model includes real estate that generates income, such as commercial real estate, with a portion of the borrower’s shares in Bitcoin as collateral.
Bitcoin is valued as part of a complete loan package, providing lenders with a liquid, divisible and transparent asset, as opposed to just real estate.
“We create credit structures that produce income, but by incorporating measured amounts of Bitcoin, these loans participate in the increase of time, providing benefits that traditional models do not provide.” description Hones in a session on the Coin Stories podcast.
The first deals demonstrate this concept, with Battery Finance refinancing a $12.5 million multifamily property with the building itself and about 20 BTC as part of a hybrid collateral package.
Borrowers have access to capital without excitement Taxable events from the sale of digital coinsWhile lenders get additional protection from loss.
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Institutional-grade Bitcoin security
Unlike pure Bitcoin-backed loans, which are still experimental and niche, NewMarket’s model is of institutional quality:
- The insurance is fully written
- Focused on rituals, and
- Legal framework for regulatory compliance in the United States.
In these structures, Bitcoin is treated as a security supplement and not as an independent means of payment; Mortgage and loan payments remain in US dollars.
“Bitcoin adds flexibility and transparency to traditional lending, but the base is still an income-generating asset,” said Hohns. “It’s a bridge between digital scarcity and traditional credit risk frameworks.”
This approach builds on a broader trend of merging real-world assets (RWA) with digital properties. In June 2025, he noticed Federal agencies such as FHFA In the middle of 2025 at this Cryptocurrencies can be considered to qualify for a mortgage.
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However, private lenders ​​​​like New Market Capital are moving faster, operating hybrid collateral structures while adhering to existing regulatory frameworks.
The work of NewMarket and Battery Finance demonstrates how Bitcoin and other cryptocurrencies can interact with TradFi as tools to open new forms of lending and credit.
However, there are challenges. BeInCrypto said that too Fannie Mae and Freddie Mac plan to accept Bitcoin as mortgage securityHowever, there is a problem.
Bitcoin must be held on regulated exchanges. Bitcoin in self-wallets or private wallets will not be recognized.
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This raises concerns about financial sovereignty and central control. The policy limits the use of Bitcoin for mortgage loans on custodial platforms visible from the state, with the exception of decentralized storage.
“It’s not about adoption versus resistance. It’s about adoption with conditions. You can play – … but only if your Bitcoin plays by its rules. Rules designed to control… As adoption deepens, the pressure will increase on lenders to properly recognize Bitcoin held – not just coins in exchange … In the end, the safest form of money will unlock the most flexible capital.” Comment One of the users.
However, while this innovation is not a solution for housing affordability, it represents a significant step towards the mainstream adoption of cryptocurrencies in real-world finance.
