Trump's simultaneous possession of cryptocurrency and real estate 'double the rise, double the loss' Lee Jae-myung 'economic stimulus'
Cryptocurrency is being linked to real estate purchases, so that cryptocurrency is purchased as collateral for the house, and when the owner and the cryptocurrency issuer jointly own it, the homeowner is left with a 'loss of value decline in the share' when the value of the cryptocurrency falls, and cryptocurrency investment is expanding.
Lee Jae-myung's regime, which imitated the Trump regime's 'making the US the capital of cryptocurrencies', is attempting to introduce cryptocurrency, and it seems that the phenomenon of cryptocurrency and real estate rising simultaneously as cryptocurrency is converted from mortgage finance to a derivative for housing purchase transactions has spread to Korea following the US.
Lee Jae-myung's 'basic income' and the 'one-time payment' system for all citizens seem to be stimulating the rise of cryptocurrency and at the same time attempting to increase housing prices.
On the 27th, Jeong Tae-ho, head of the Economic 1st Division of the State Affairs Planning Committee, instructed the Bank of Korea to “take a forward-looking stance on stablecoins” during its business report.
Director Jeong openly stated at a press conference immediately after the business report that “there were opinions from individual members that the Bank of Korea should also take a forward-looking stance on (won) stablecoins,” and since the introduction of stablecoins was President Lee Jae-myung’s presidential campaign promise, it seems that the director forcibly ordered the Bank of Korea to issue cryptocurrencies, breaking the independence of monetary policy guaranteed by the Constitution.
In President Lee’s presidential campaign promise book, it was stated that “we will prepare a plan to utilize stablecoins, such as issuing and distributing won-denominated stablecoins.” Yonhap News reported on the 29th, “Hashed, the largest blockchain investment company in Korea, is known to be discussing with major financial holding companies a plan to issue a stablecoin based on the won,” and “As the discussions on the second real-world CBDC transaction experiment led by the Bank of Korea have been temporarily suspended, each bank is expected to accelerate its preparations for issuing stablecoins with its own banks or non-banking companies.”
The real-world CBDC transaction test by the Bank of Korea’s treasury is a project in which the Bank of Korea issues ‘institutional digital currency’ (tokenised wholesale central bank money), and participating banks issue and distribute ‘deposit tokens’ (tokenised commercial bank deposits) as a means of payment and settlement linked to it, and examine whether there are any problems with financial consumers using them for payments, etc.
On March 2, when President Trump announced the names of five digital assets, including the new U.S. Strategic Reserve Fund, through Social Truth, amid growing controversy over the economic downturn due to tariff attacks, the entire cryptocurrency market rose by about 10% (over $300 billion) in the hours following the announcement.
Sovana, a cryptocurrency company founded by former Google executives, allows companies and individuals to purchase more Bitcoin using some of their real estate holdings as collateral, and Sovana uses a formula based on the assets in the individuals’ real estate to purchase Bitcoin and then deposits the cryptocurrency into a secure account, thereby sharing the profits when the value of the cryptocurrency goes up through a ‘trade.’
The New York Times, which covered this, reported on the 26th that “if the value of Bitcoin falls, real estate owners will have to make up for the shortfall,” and that “Harry W. Prahl, 35, who has been investing in Bitcoin since 2016, is interested in investing in this way to buy more cryptocurrency by using his home and the equity in several apartment buildings he owns.”
“It’s an alternative way to leverage commercial capital that doesn’t impact your business,” Mr. Pral told the NYT, explaining the reason for the deal. “And the fact that you don’t have to make any payments is the real killer feature.”
The largest mortgage lenders in the U.S. are already set to begin accepting cryptocurrencies as assets on mortgage applications, another major step by the Trump administration to bring digital currencies into mainstream finance.
During his campaign,
President Trump pledged to “make America the capital of crypto,” and on Monday, the NYT reported that William Pulte, Trump’s chief housing officer, told Fannie Mae and Freddie Mac, the two largest mortgage lenders in the U.S., that he would instruct them to consider homebuyers’ crypto investments as part of their overall assets when assessing whether they can afford a mortgage.
Mortgage lenders in the U.S. have traditionally considered homebuyers’ cash savings and stock investments in their loan terms, and cryptocurrencies are now part of that mix.
Fannie and Freddie, two of the major players in the U.S. housing market, set a set of criteria for banks to purchase mortgages and accept mortgages from borrowers.
The announcement by Federal Housing Finance Agency Chairman Pulte on Wednesday comes as more and more Americans are using digital currencies to buy homes and as new companies try to help them leverage their cryptocurrency holdings to buy real estate.
Pulte’s order allows cryptocurrency holders to double down on their holdings without having to cash out their crypto holdings to buy homes.
“Homebuyers will no longer have to sell their crypto for cash as part of the mortgage qualification process,” the Times reported. “Cryptocurrencies are gaining traction in the housing market as home sales stagnate, leaving many people unable to sell or buy homes or without having to leverage their home equity through loans.”
Several startups are already promoting cryptocurrencies as a way to break through the current market swamp and start selling homes.
Milo, founded by former Morgan Stanley financial adviser Josip Rupena, is offering investors a way to use Bitcoin as collateral for their homes.
For a $1 million home, investors post $1 million worth of Bitcoin, which Milo puts in a secure account, and the company provides $1 million in cash to purchase the home.
Milo then writes an equivalent mortgage that the homebuyer is ultimately responsible for repaying, with the mortgage interest rate being a few percentage points higher than a regular mortgage, and the customer simultaneously holds the home and the cryptocurrency without having to sell the cryptocurrency or pay capital gains, so both sides benefit from price increases, creating a structure where both sides surge simultaneously and one side faces a decline from an external shock, causing both sides to crash simultaneously.
Once the home mortgage is repaid, Milo returns the Bitcoin to the investor.
“We’ve already underwritten $65 million in mortgages,” Mr. Rupena told the Times, adding that he welcomes the Federal Housing Finance Agency’s (FHFA) policy change on cryptocurrencies.
Unlike most bank mortgages, which Fannie and Freddie are buying, the crypto-backed transactions do not require homeowners to make a down payment.
Mr. Fannie’s transaction company finances 100% of the transactions.
“This is the first step toward making cryptocurrencies more like other assets,” Milo’s CEO Rupena told the Times of the FHFA decision.
Most mortgage lenders and banks don’t do that, and it’s unlikely that will change under the Trump administration, and crypto investment is expanding.
Other startups in the U.S. are helping homeowners use their home equity to buy cryptocurrencies.
This investment strategy, similar to so-called home equity investment contracts, has encouraged homebuyers to buy homes by giving them a lump sum in exchange for the right to share in the appreciation of their homes, driving up real estate prices.
But instead of using the cash from the deal to pay for home improvements or their children’s college tuition, homeowners are buying bitcoin and using it to settle the rest simultaneously, creating a simultaneous stimulus package that both boosts the housing market and stimulates consumption.
The Horizon startup posted on X, “Turn your home into a bitcoin collecting engine.”
Here’s how Horizon, which Trump’s two sons pitched in its startup pitch, works as a startup:
Some companies lend cash to homeowners to buy bitcoin based on their home equity, and the companies typically make money by sharing in the appraisal value of their homes when owners sell them.
The deal is attractive to homebuyers because it doesn’t require homeowners to make monthly payments over the life of the contract, like a traditional home equity loan, and the cryptocurrency appreciates in value.
For protection, some companies also place liens on the home during the life of the contract, some of which can last for 10 years.
Horizon made its debut last month at a Bitcoin conference in Las Vegas, where two of Trump’s sons were featured speakers.
Horizon’s distribution tagline was “Turn Dormant Home Equity into Bitcoin” with the subtitle “Diversify Your Wealth. Secure Financial Freedom.”
Consumer advocates have a different set of concerns.
“My general impression is that it’s a terrible idea to have a lien on your house to buy cryptocurrency,” Andrew Pizor, a senior attorney at the National Consumer Law Center specializing in mortgage financing, told the Times. “It’s a roof over your head, and you have to be careful.”
“All of these programs are in their early stages, so it’s too early to tell how much interest they’ll ultimately attract,” the Times said. “Executives from these companies say concerns about consumers being exploited are overblown, but most potential customers are wealthy investors.”
The Lee Jae-myung administration has seen the emergence of Kim Yong-beom, a policy chief who is actively promoting the issuance of a “won-based stablecoin” in the introduction of cryptocurrencies.
Since 2022, Kim has been the head of Hashed Open Research, a think tank of Hashed, Korea’s largest blockchain investment firm. Hashed Open Research has led various studies and proposals on the future of the blockchain and virtual asset industries.
Director Kim released reports on stablecoins after Donald Trump was elected as US President in November of last year, and in March, as the Korean presidential election approached, he published a report titled “The Necessity of Won Stablecoins and Proposals for Legislation,” stating that “If we leverage the strengths of won stablecoins within the scope of maintaining manufacturing competitiveness, the won will be able to maintain its competitiveness against other countries’ currencies.”
Director Kim’s stablecoin policy is a strategy for the US and Korea to leap forward as a “digital G2 together,” and President Lee Jae-myung told YouTubers during his presidential campaign that “we need to create a won stablecoin market so that we are not left out and can prevent the outflow of national wealth.”
In September of last year, during the US election campaign, Trump and his sons announced World Liberty, which they promoted as a new type of internet bank where people can borrow and lend money using cryptocurrencies. World Liberty sold $550 million worth of the cryptocurrency $WLFI, with much of the proceeds going to businesses linked to the Trump family, and previously developed a stablecoin in March.
Stablecoins are digital currencies designed to maintain a price of $1, and their value does not fluctuate like stocks, but they are developed for large-scale transactions, and are used by foreigners to donate to the Trump camp as political funds (campaign inauguration donations), the New York Times reported.
At the first event where the president's real estate investment tycoon, who became the special envoy for the Middle East, and Trump's son, Eric Trump, sat side by side, Justin Sun, a Chinese-born billionaire and the world's top investor and operator of the cryptocurrency platform TRON, bought $75 million worth of $WLFI coins immediately after Trump's election victory.
In the transaction between cryptocurrency companies Binance and MGX, the USD1 guarantor was World Liberty, which provided financial support and is the issuer of the stablecoin that the Lee Jae-myung administration is trying to introduce.
World Liberty receives deposits from investors, provides stablecoins in return, and then invests the deposits to generate profits that the issuer maintains, making money.
In a post to X, Federal Housing Finance Agency (FHFA) Administrator Pulte cited two of the largest mortgage lenders he had met with, saying that Pulte decided to include crypto in homebuyer equity after Fannie and Freddie did “substantial research,” which he said aligns with President Trump’s vision to make the U.S. the crypto capital of the world.
The president announced during his first cabinet meeting after taking office that “cryptocurrency is the next-generation growth engine,” and that fostering digital assets would be a key strategy for recovering the sluggish Korean economy, cryptocurrency media outlet <AMB Crypto> reported on the 5th.
During a National Assembly standing committee meeting, the president appointed Rep. Kim Nam-guk, who had left the Democratic Party due to growing criticism over excessive cryptocurrency trading, as his closest aide, the National Digital Communication Secretary.
Former Rep. Kim earned billions in profits from cryptocurrency investments, and when he reported his assets as a member of the National Assembly, he transferred only a portion of his coin deposits to a bank deposit account to match his total assets, and did not report the rest of his coins, raising suspicions of intentional omission of assets. The first appeal trial for obstruction of official duties will be held on July 17.
The economic provisions of the Constitution are stated as <Article 119 ① The economic order of the Republic of Korea shall be based on respect for the economic freedom and creativity of individuals and enterprises. ② The State may regulate and adjust the economy in order to maintain the balanced growth and stability of the national economy and the appropriate distribution of income, prevent the domination of the market and the abuse of economic power, and democratize the economy through harmony among economic entities>.
The Bank of Korea Act states <Article 3 (Neutrality of the Bank of Korea) The monetary and credit policies of the Bank of Korea shall be established neutrally and executed autonomously, and the autonomy of the Bank of Korea shall be respected>, specifying the ‘infringement of the autonomy of the Bank of Korea’ by the government and the president as a government prohibition, and it appears that the National Planning Commission violated this.
<Lee Jae-myung regime's stablecoin shakes the won, Trump Genius Act linkage, June 18, 2025. Reference
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