ERIC KIM

SATOSHI HOME FINANCE

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A Bitcoin-backed mortgage company that lets people buy homes without selling their BTC.

The killer thesis

Most BTC holders don’t want to nuke their upside just to get a down payment. You solve that by making BTC a second layer of collateral + a pricing lever, while still running a fully compliant U.S. mortgage (ATR/QM, state licensing, etc.). 

1) The flagship product: “BTC-Reserve Mortgage”

A standard USD mortgage secured by the home plus a segregated BTC collateral vault.

Borrower experience

  • Gets a 30-year fixed (or ARM) mortgage like normal
  • Posts BTC into a dedicated vault (segregated, not rehypothecated unless explicitly opted-in)
  • Earns either:
    1. Rate discount, or
    2. No-PMI / lower effective LTV, or
    3. Faster approvals (stronger reserves profile), or
    4. All of the above

Why this is clean

  • The mortgage underwriting still must show the borrower can repay under the Ability-to-Repay / Qualified Mortgage framework (don’t “count on BTC” as income).  

2) Collateral mechanics (the “how it actually works”)

A) Vault + control

Your company takes a perfected security interest in the BTC collateral using the modern secured-transactions framework being updated for digital assets (conceptually: “control” over a “controllable electronic record” in jurisdictions that adopted the amendments). 

Implementation

  • Qualified custodian or institutional custody partner
  • Tri-party control agreement (Borrower ↔ Custodian ↔ Lender)
  • Multi-sig or policy-based controls (lender can enforce only under defined triggers)

B) Haircuts + buffers (make it bulletproof)

BTC is volatile, so you use conservative collateral credit:

  • Example: borrower posts $200k BTC on a $1,000,000 mortgage
  • You apply a 60% haircut → collateral credit = $80k
  • That $80k credit funds: rate discount / reserve strength / PMI elimination structure

C) Triggers (no chaos, only rules)

You define simple, disclosed thresholds:

  • Monitor ratio: (BTC value × (1–haircut)) / loan balance
  • Call threshold: if ratio drops below X%
  • Cure options: add BTC, add cash reserves, or principal curtailment
  • Last resort: controlled liquidation only to restore ratios (pre-agreed waterfall)

(The goal is not liquidation. The goal is discipline.)

3) Product suite (how you dominate the category)

1) BTC-Reserve Mortgage (core)

  • Rate discount ladder based on BTC posted (after haircut)
  • Optional “release valve”: if BTC moons, borrower can request partial collateral release subject to ratios

2) BTC Down Payment Bridge

Short-term loan against BTC for down payment + closing costs, refinanced into the mortgage at close.

3) “No-Sell” Refi

Refinance + keep BTC exposure intact (big for long-term holders).

4) Builder / Jumbo focus

Start where margins live: jumbo loans, self-employed, high-credit, high-asset borrowers.

4) Regulatory + compliance spine (non-negotiable)

A) Mortgage rules: ATR/QM

You must document ability-to-repay and follow the mortgage compliance regime. 

B) Licensing: NMLS + state-by-state

You run licensing through NMLS and meet each state’s checklist/requirements. 

If you’re operating in California, mortgage origination paths can involve DRE licensing/MLO endorsement requirements depending on model. 

C) Avoid accidental “money transmitter” problems

Design the flow so you’re not “accepting and transmitting” customer crypto as a payment rail. If you do fall into that bucket, FinCEN’s guidance ties it to MSB obligations (registration + AML program + reporting). 

Clean design principle: BTC is collateral held in custody, not a remittance service.

5) Funding model (how you print cash without dying)

Phase 1: originate + sell (lightweight start)

  • Become a mortgage broker/correspondent
  • Use partners for servicing + warehouse lines
  • You earn: origination fees + secondary margin + custody/program fees

Phase 2: hold paper (becoming the monster)

  • Warehouse line → aggregate → sell to private investors or securitize
  • Create “BTC-Reserve enhanced” loan pools with conservative triggers

6) Tech stack (minimum viable to launch)

  • Loan Origination System (LOS) + eSign + doc gen
  • Custody partner integration
  • Real-time BTC price feed + risk engine
  • Automated collateral calls + audit logs
  • Compliance stack (mortgage disclosures, retention, call recordings if required)

7) Unit economics (simple and violent)

Revenue per loan:

  • Origination points + lender credits + SRP/secondary margin
  • BTC program fee (basis points on collateral only if compliant + disclosed)
  • Optional: premium pricing for “no-sell liquidity” borrowers

Costs:

  • Licensing + compliance + QC
  • Custody + insurance
  • Hedging/treasury (if you offer guaranteed pricing linked to BTC)

8) 0→90 day launch plan

Week 1–2

  • Form entity + compliance counsel retained
  • Pick your model: broker → correspondent → lender
  • Lock custody partner + term sheet for control agreement

Week 3–6

  • NMLS filing + state roadmap (start with 3–5 launch states)
  • Build underwriting overlays (credit box + BTC haircut + trigger policy)
  • Draft borrower disclosure pack (brutally clear)

Week 7–10

  • Pilot with a tight niche: Jumbo, high-FICO, BTC holders
  • Partner with 20 realtors + 5 builders + 10 BTC-native communities
  • Fund first 10 loans, obsess over ops + risk

Week 11–13

  • Expand states + warehouse line discussions
  • Standardize loan pools for investor takeout

The positioning line (put this everywhere)

“Keep your Bitcoin. Buy the house. Dominate both worlds.”

If you want, I’ll write:

  • the full borrower-facing product page (hard-hitting, conversion-focused),
  • the underwriting policy (haircuts, triggers, cure periods),
  • and the pitch deck outline for warehouse lenders + private credit funds.

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