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CRYPTO NEWS – WEEK-ENDING 13 JULY 2025:

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Fedwire XRP Payments

The relationship between Fedwire payments and XRP has been a topic of discussion, particularly with recent developments suggesting potential integration. Fedwire, the real-time payment system run by the Federal Reserve, processes a staggering $1 quadrillion annually, handling everything from government disbursements to corporate transactions. XRP, the digital asset developed by Ripple, has been proposed as a potential disruptor in real-time settlements due to its near-instant, low-cost international payment capabilities.

Recent reports indicate that Ripple has applied for a U.S. Federal Reserve master account, which would provide direct access to the Federal Reserve’s payment systems, including Fedwire and FedNow. This move could enable Ripple to revolutionize cross-border payments by settling transactions directly with other financial institutions globally, making its On-Demand Liquidity (ODL) solution even more efficient and cost-effective.

Question answered by ChatGPT about ‘Freddie Mac and Fanny Mae & crypto assets as collateral:

Yes — as of late June 2025, the Federal Housing Finance Agency (FHFA), which supervises Fannie Mae and Freddie Mac, has directed both agencies to begin preparing to recognize crypto assets held on U.S.-regulated centralized exchanges (e.g. Coinbase, Gemini) as part of borrowers’ reserves for single-family mortgages—without requiring conversion to USD (cointelegraph.com).

🏠 What does this mean?

  • Crypto as asset collateral
    Borrowers could count crypto holdings toward the asset reserve requirements (e.g. cash, stocks), instead of having to cash out—significantly helping crypto holders qualify for mortgages (businessinsider.com).
  • Where this applies
    Only single-family conventional mortgages that Fannie Mae and Freddie Mac purchase from lenders. Private crypto-collateralized loans already exist, but this move brings it into government-backed mortgage territory (housingwire.com).

🔍 Key requirements & caveats

  1. Asset storage
    Only crypto held on U.S.-regulated centralized exchanges, with proof of ownership, is eligible (apnews.com).
  2. Volatility safeguards
    FHFA expects proposals to include haircuts or risk adjustments to account for crypto’s price swings (washingtonpost.com).
  3. Board approvals needed
    Fannie and Freddie must draft plans, get board approval, then submit final details to the FHFA before implementation (reuters.com, pymnts.com).

⚠️ Risks and concerns

  • Price volatility: Markets like Bitcoin can swing dramatically—even daily—and this volatility may impact collateral value and risk-level estimations (ledgerinsights.com).
  • Security issues: Only centrally-exchanged assets are allowed, sidelining self-custody options despite such wallets often being more secure (bitsofblocks.io).
  • Taxpayer exposure: Since Fannie and Freddie are government-sponsored, there are worries that defaults linked to crypto collateral could impact taxpayers (washingtonpost.com).

✅ What’s next?

  • FHFA has ordered the drafting of proposals, expected “as soon as reasonably practical” (apnews.com). These proposals will outline valuation protocols, collateral adjustments, and underwriting criteria.
  • Board reviews and regulatory approval: The changes won’t be immediate. They require internal approval by Fannie Mae and Freddie Mac boards, then FHFA sign-off—all before being enacted .

🔎 So will crypto count soon?

Short answer: It’s coming—but not yet. The directive is a major policy signal that crypto is moving toward mainstream mortgage use. But the actual availability of crypto-backed mortgages funded by Fannie/Freddie depends on completing the proposal, approval, and implementation process. In the meantime, some private lenders already offer crypto-backed mortgage or crypto as asset qualification programs (businessinsider.com).

📌 Bottom line

Crypto assets may soon be eligible as collateral in Freddie and Fannie-backed mortgages—specifically, as verifiable reserves held on U.S. exchanges, subject to volatility haircuts and formal underwriting protocols. It’s a significant step toward integrating digital assets into traditional mortgage finance—but widespread implementation hinges on final approvals and rollout timing.

Let me know if you’d like details on how existing private crypto-backed mortgage products work, or if you’re interested in monitoring the FHFA’s developing proposals.

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BasedAmy

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