Now, Best Wallet is preparing for a wave of new user adoption that could make it rain. The integration of that $12 trillion U.S. mortgage market with the $3 trillion digital asset economy is coming fast. Lack of leadership and recent mandates from the Federal Housing Finance Agency (FHFA) have led to this unhealthy trend. Now, borrowers can use cryptocurrency to fund mortgage applications! Through its decentralized, non-custodial design, Best Wallet is uniquely positioned to take advantage of this rapidly changing financial ecosystem.
Best Wallet Token ($BEST) presale has already attracted a lot of attention, successfully raising over $7.4 million. Each $BEST token is currently worth $0.00258, indicating high investor confidence on the project’s prospects. That presale success comes at the same time as other macro movement within the crypto industry to broaden its mainstream use cases and accessibility.
Read this article to learn more about the technicalities behind the integration. It takes a look at the role of major actors such as Fannie Mae and Freddie Mac, Chapter 11 bankruptcy, and potential effects on the crypto market and consumer adoption.
FHFA's Directive and GSEs' Response
As FHFA Director William J. Pulte recently stated, he has provided Fannie Mae and Freddie Mac clear direction on this in a joint directive. He would like to see them come up with plans that allow borrowers to apply their cryptocurrency holdings toward reserve requirements on mortgage applications. Taken together, this move represents yet another huge step towards making crypto assets legit participants in the traditional financial system.
This joint effort is more important than ever to ensure the integration remains thoughtful, benefiting, and protecting vulnerable communities. For starters, you need to possess crypto assets on U.S.-regulated centralized exchanges. Establish criteria for cryptocurrencies to be eligible as part of reserves, set volatility haircuts to limit risk, and develop strong verification protocols to ensure asset ownership and value.
Before making any changes, Fannie Mae and Freddie Mac must receive approval from the FHFA. This step ensures that their approved plans meet the agency’s safety and soundness standards. This strong oversight for cryptocurrency will ensure borrowers and lenders are equally protected as crypto continues to integrate within the housing market.
Industry Reactions and Preparations
The broader crypto industry is reacting positively to the FHFA's announcement, viewing it as a validation of digital assets' growing importance. Companies such as Pudgy Penguins have proven themselves with a commitment to making retail crypto adoption a priority. They’re studiously identifying ways to build on the new regulatory environment.
As a non-custodial wallet, Best Wallet would benefit greatly from this integration. Non-custodial wallets provide users with complete custody over their private keys and assets. This feature addresses the increasing need for secure, self-custodied crypto solutions. Increasingly, individuals are looking to apply for a mortgage with their crypto holdings. This trend would be a huge driver of demand for platforms like Best Wallet.
All of these recent moves and developments in the crypto space are stirring up big waves. For example, Privacy Pools recently brought on stablecoin support for private Ethereum transfers, exponentially increasing the utility and privacy of digital assets and luring in a more diverse set of financial applications. These key improvements work together to create a safer and more inclusive crypto environment.
Market Predictions and Potential Impact
Analysts are bullish on what these developments could mean for the cryptocurrency market. Kevin Svenson, a popular crypto market analyst, is forecasting a huge welcome back altcoin explosion. That’s his prediction should Bitcoin start breaking new all-time highs and another asset class breaks its own records. Having crypto participate in the mortgage market would provide exponential growth. This simple change would lead to more investment to advance the technology and machinery, and increased adoption across the industry.
The growth of cryptocurrency use in mortgage applications would drastically change the shape of the housing market as well. With this pilot, Fannie Mae and Freddie Mac are pioneering the use of crypto assets for borrowers. This kind of policy change could be a big step toward expanding access to homeownership. This might be especially helpful to engage the younger, tech-savvy generations who are more likely to be cryptocurrency investors and holders.
Challenges remain. The extreme volatility of cryptocurrency markets creates risks for borrowers and lenders alike, requiring robust risk management strategies. We still hear that regulatory uncertainty is the top concern. Changing rules may impact the feasibility of accepting crypto for mortgage applications.
