The Bitcoin Layer Bitcoin Collateral & GSE Reform: A $40 Trillion Credit Revolution
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Jul 30, 2025 Matt Dines, Chief Investment Officer at Build, shares insights on the intersection of Bitcoin and traditional finance. He discusses the GENIUS Act and its implications for U.S. dollar stablecoin regulation linked to Bitcoin collateral. Dines explains how utilizing Bitcoin for mortgages could revolutionize access to homeownership for Gen Z, driving a $40 trillion private credit boom. He emphasizes the need for reform in government-sponsored enterprises to integrate private capital, enhancing mortgage lending and supporting a Bitcoin-centric financial future.
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GSE Privatization Unlocks Credit
- The privatization of GSEs (Fannie and Freddie) will require private capital to buy back equity from the Treasury.
- This process could unlock significant mortgage originations and credit expansion essential for economic growth.
Credit Growth Fuels GDP Rise
- To support a $24 trillion increase in Treasury debt, nominal GDP must grow by about $15 trillion.
- Achieving this requires a $64 trillion credit expansion in the private economy over the next decade.
Banking Limits Mortgage Credit Growth
- Current banking system growth in residential lending is slow and insufficient to achieve desired credit expansion.
- Both supply of capital and borrower qualification are bottlenecks limiting mortgage origination growth.
