There’s something quietly revolutionary about Peoples Reserve’s mission. In a financial world still built around credit scores, W-2s, and promise-backed debt, they’re taking a page from Bitcoin’s playbook by building trust into the system itself. And with the launch of Peoples Reserve this summer, they’re aiming to offer Bitcoin Powered Mortgages (BPMs) that don’t just challenge traditional lending, but arguably reimagine it entirely.
The idea is to treat Bitcoin like what it increasingly behaves like, a super asset. For years, the wealthy have borrowed against their appreciating assets without selling them, sidestepping taxes and preserving upside. Whether it’s Elon Musk leveraging Tesla stock to buy Twitter or Jeff Bezos floating Amazon equity for new ventures, the playbook is clear. Now, with Bitcoin maturing as a financial instrument, Peoples Reserve wants to put that same power in the hands of “We The People.”
It’s a sharp pivot from how most Americans engage with money. Traditional home ownership, which is still a cornerstone of wealth in the U.S., comes with rigid requirements: proof of income, long credit histories, and the patience to navigate an often opaque system. But for the growing cohort of Bitcoin holders, especially those who’ve been in the game long enough to watch five figures grow into seven, CJK says there’s finally an alternative.
At the heart of Peoples Reserve is an innovative dual-collateralization structure: borrowers post Bitcoin as pristine collateral alongside the real estate itself. It’s a clever financial engineering move that lowers lender risk while opening the door to lower rates for borrowers. In fact, CJK argues it creates the first truly free-market mortgage. Interest rates today are price-controlled, dictated by stated and anchored rates, not discovered through supply and demand, plus counterparty risk. At Peoples Reserve, Bitcoin’s volatility is just a part of the pricing model.
That volatility is tempered through adjustable interest rates tied not to Fed decisions but to the performance of the Bitcoin used as collateral. The more Bitcoin you post, the lower your rate. The more Bitcoin appreciates, the more favorable your position. And if the price drops, the rate adjusts — not instantly, but within pre-set thresholds based on standard deviations. It’s a buffer system designed to absorb natural swings without spooking borrowers.
Crucially, this isn’t just another fintech play dressed up in crypto clothes. Peoples Reserve won’t rehypothecate your Bitcoin — the practice of lending out your collateral to other borrowers, which became a root cause of collapse for several crypto lending platforms during the last bull cycle. Instead, the company uses multi-signature wallets to ensure both borrower and lender are protected. The borrower can’t sneak off with the funds, and the lender can’t secretly leverage the collateral elsewhere. That’s part of the pitch: real decentralization, minus the hype.
It’s also a deeply personal story for CJK. Years ago, he bought his first home with 100 Bitcoin. It seemed like a savvy move at the time. Today, that same Bitcoin would be worth more than $10 million, far outpacing the value of the home. It’s a cautionary tale of early adoption and the steep cost of selling too soon. Peoples Reserve’s solution is built to empower you to unlock the purchasing power of your Bitcoin without having to give up ownership.
To secure a $500,000 mortgage, you’ll need to post an equal amount in Bitcoin as collateral, one-to-one. Industry standard Loan-to-Value ratios are 50% to 70%. Meaning you borrow $500,000 for every $1 million in posted collateral. By cross-collateralizing the property and Bitcoin, Peoples Reserve is making homes more affordable for those who choose to save in Bitcoin.
But that’s not the real innovation. Mitigated liquidation risk is the key. Your Bitcoin won’t be liquidated based on Bitcoin’s price volatility. The Bitcoin is only liquidated if payments stop and you default on the loan. If you hit a rough patch and can’t make your mortgage payment, you can use a portion of your posted Bitcoin to cover the gap until you’re back on your feet. And if the value of your Bitcoin grows substantially? You can pay off the loan early, with no penalty, and keep the upside. In theory, your Bitcoin could pay for your house without ever selling it!
The offering has attracted more than just retail interest. Peoples Reserve is actively courting institutional lenders and liquidity providers, touting Bitcoin as pristine collateral for diversifying loan portfolios. The bet is that a class of borrowers with appreciating, high-quality collateral — and no desire to part with it — will be a safer bet than many of today’s credit-driven counterparts.
This isn’t just about mortgages. The company has broader ambitions: Bitcoin-denominated bonds, financial tools for businesses, and a full suite of digital asset products and services for the growing digital economy, especially for those who use Bitcoin as savings, not speculation. But for now, it starts with the home.
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