Crypto + Relo: Mobility industry impacts

Impacts of cryptocurrency investing are just beginning to emerge in the mobility industry. Here are some things to know.

 

Early applications relating to real estate transactions involving virtual assets are becoming more common. Mortgage loan products that accommodate the use of volatile cryptocurrencies as collateral in the same way a homebuyer seeking a traditional mortgage might offer investment accounts, savings, or other property are also just beginning to appear.

Mobility managers should begin to assess the potential impacts and risks of these arrangements given the popularity of cryptocurrency investing. Policies may soon need to establish guardrails to protect mobility investments and address the intersection of cryptocurrency transactions and financing with mobility benefits.

 

Cryptocurrency in real estate transactions

One way mobility managers may begin to see crypto begin to appear in their day-to-day work is with home purchases, whereby a transferring employee wishes to use cryptocurrency assets to purchase a home at destination by transferring their bitcoin or similar crypto assets to a property seller in lieu of all or part of the contracted purchase price. The feasibility of such an arrangement depends on the seller’s willingness to receive bitcoin in lieu of cash for any portion of the purchase price exceeding the amount they are obligated to direct to mortgage lenders, home equity loan financers or other lienholders.

This is likely to gain traction in some markets sooner than others. For instance, locations with heavy tech industry presence may lead the way since buyers and sellers in those markets may be more likely to be early adopters of using crypto assets for complex transactions like real estate.

For mobility program managers, the practical implications to consider include:

  • Using crypto assets for a home purchase financing could negatively impact mortgage qualifying since underwriters are unlikely to consider such holdings as they might other traditional assets given the volatile nature of the crypto market.
  • There may be a need to adopt disclaimers to establish that any delays or duplicated costs that result from an employee’s attempt to use crypto assets for a home purchase would not be the responsibility of the company.
  • It is also prudent to reiterate that substitution of benefits is not allowed, since an employee that is able to purchase with cryptocurrency, or cash for that matter, might be compelled to request compensation in lieu of coverage of traditional purchase expenses.
  • U.S. homeowners disposing of departure location properties should be discouraged from negotiating sale terms with outside buyers that involve transfer of crypto assets since doing so could compromise eligibility for third party home sale assistance programs.
     

The intersection of cryptocurrencies and mobility provisions will continue to evolve but could become more complicated as the transactions become more commonplace and the traditionally volatile crypto space becomes more regulated. U.S. Bank will continue to monitor and report on crypto trends so that mobility program managers can be prepared to adjust policies as needed to minimize risks.

 

Read more about how homebuying and mobility trends impact employees and connect with corporate relocation experts and home lending specialists.

Related content

How a bar trivia company went digital during COVID-19

6 ways to spring clean your finances and save money year-round

4 questions to ask before you buy an investment property

Preparing for homeownership: A guide for LGBTQ+ homebuyers

30-day adulting challenge: Financial wellness tasks to complete in a month

Which is better: Combining bank accounts before marriage — or after?

Gift cards can extend ROI into 2022

5 principles for avoiding ethics pitfalls on social media

Multiple accounts can make it easier to follow a monthly budget

Prioritizing payroll during the COVID-19 pandemic

Why other lenders may be reaching out to your employees

Business risk management for owners of small companies

Why retail merchandise returns will be a differentiator in 2022

The client-focused mindset: How to network effectively

How to stop living paycheck to paycheck post-pay increase

How Wenonah Canoe is making a boom in business last

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

Save time and money with automatic bill pay

Closing on a house checklist for buyers

Tips to overcome three common savings hurdles

5 tips for helping employees raise ethics concerns

Saving for a down payment: Where should I keep my money?

What’s a subordination agreement, and why does it matter?

Webinar: CSM corporation re-thinks AP

The San Francisco bridal shop that’s been making memories for 30 years

4 questions you should ask about your custodian

Is online banking safe?

How (and why) to get your business supplier diversity certification

Refining your search for an insurance custodian

How to reward employees and teams who perform well

Evaluating interest rate risk creating risk management strategy

Work flexibility crucial as municipalities return to office

8 ways to increase employee engagement

The surprising truth about corporate cards

How I did it: Learned to budget as a single mom

10 ways to increase your home’s curb appeal

7 steps to prepare for the high cost of child care

Housing market trends and relocation impact

Should you get a home equity loan or a home equity line of credit?

The lowdown on 6 myths about buying a home

How I did it: Bought my dream home using equity

Dear Money Mentor: When should I refinance a mortgage?

5 tips for managing your business cash flow

Year-end financial checklist

5 unique ways to take your credit card benefits further

Insource or outsource? 10 considerations

High-yield bond issuance: 5 traits lawyers should look for in a service provider

3 tips to maintain flexibility in supply chain management

Checklist: 10 questions to ask your home inspector

Preparing for your custodian conversion

5 winning strategies for managing liquidity in volatile times

Trends in economics, immigration and mobility policy

Easier onboarding: What to look for in an administrator

Business tips and advice for Black entrepreneurs

Empowering team members

10 tips on how to run a successful family business

Spring cleaning checklist for your home: 5 budget-boosting tasks

The client-focused mindset: Adapting to differing personality types

Business credit card 101

The growing importance of a strong corporate culture

Adulting 101: How to make a budget plan

First-time homebuyer’s guide to getting a mortgage

Is it time to get a shared bank account with your partner?

Test your loan savvy

Checklist: 6 to-dos for after a move

Overcoming high interest rates: Getting your homeownership goals back on track

Pros and cons of a personal line credit

Addressing financial uncertainty in international business

Complying with changes in fund regulations

The future of financial leadership: More strategy, fewer spreadsheets

House Hacks: How buying an investment property worked as my first home

How I did it: Bought a home without a 20 percent down payment

3 tips for saving money when moving to a new home

5 ways to maximize your garage sale profits 

Putting home ownership within reach for a diverse workforce

Administrator accountability: 5 questions to evaluate outsourcing risks

Service provider due diligence and selection best practices

Webinar: CRE technology trends

Avoiding the pitfalls of warehouse lending

Webinar: AP automation for commercial real estate

Employee benefit plan management: trustee vs. custodian

Choosing your M&A escrow partner

Changes in credit reporting and what it means for homebuyers

What’s the difference between Fannie Mae and Freddie Mac?

Tapping into indirect compensation to recruit foreign talent

A checklist for starting a mobility program review

High-cost housing and down payment options in relocation

The client-focused mindset: What do clients expect?

Overcoming the 3 key challenges of a lump sum relocation program

Crypto + Relo: Mobility industry impacts

For today's relocating home buyers, time and money are everything

Opening a business on a budget during COVID-19

Talent acquisition 101: Building a small business dream team

How I did it: Turned my side hustle into a full-time job

How to test new business ideas

How to get started creating your business plan

The role of ethics in the hiring process

The costs of hiring a new employee

How to hire employees: Employee referral vs. external hiring

Give a prepaid rewards card for employee recognition

5 steps for creating an employee recognition program

Tips for building a successful customer loyalty program

Checklist: Increase lead generation with website optimization

Omnichannel retail: 4 best practices for navigating the new normal

Is your restaurant Google-friendly?

What you should know about licensing agreements

3 simple brand awareness tips for your business

How a small business owner is making the workplace work for women

7 uncommon recruiting strategies that you may not have tried yet

Meet your business credit card support team

How to apply for a business credit card

Break free from cash flow management constraints

Improve online presence your business

How Shampoo’ed is transforming hair and inspiring entrepreneurs

How Al’s Breakfast is bringing people together

In a digital world, Liberty Puzzles embraces true connection

Celebrity Cake Studio’s two decades of growth and success

How a group fitness studio made the most of online workouts

How community gave life to lifestyle boutique Les Sol

How a travel clothing retailer is staying true to its brand values

How to build a content team

Use this one simple email marketing tip to increase your reach

How I did it: Joined a board of directors

5 tips for being a great board member

Tips for navigating a medical hardship when you’re unable to work

Checklist: financial recovery after a natural disaster

Recognize. React. Report. Caregivers can help protect against financial exploitation

Is raising backyard chickens a good idea financially?

Webinar: Uncover the cost: International trip

How having savings gives you peace of mind

Helpful tips for safe and smart charitable giving

Allowance basics for parents and kids

You can take these 18 budgeting tips straight to the bank

Do you and your fiancé have compatible financial goals?

Personal finance for teens can empower your child

It's possible: 7 tips for breaking the spending cycle

How to save for a wedding

Here’s how to create a budget for yourself

Don’t underestimate the importance of balancing your checking account

9 simple ways to save

5 tips to use your credit card wisely and steer clear of debt

Travel for less: Smart (not cheap) ways to spend less on your next trip

What you need to know about renting

Real world advice: How parents are teaching their kids about money

Practical money tips we've learned from our dads

How to cut mindless spending: real tips from real people

How to increase your savings

5 tips to use your credit card wisely and steer clear of debt

Understanding the true cost of borrowing: What is amortization, and why does it matter?

Know your debt-to-income ratio

Your quick guide to loans and obtaining credit

Is it cheaper to build or buy a house

For today's homebuyers, time and money are everything

Crypto + Homebuying: Impacts on the real estate market

Should you buy a house that’s still under construction?

Buying a home Q&A: What made three homeowners fall in love with their new home

Managing the impacts of appraisal gaps in a hot housing market

How I did it: Built living spaces to support my family

Your guide to breaking the rental cycle

What are conforming loan limits and why are they increasing

Webinar: Uncover the cost: Building a home

Home buying myths: Realities of owning a home

4 ways to free up your budget (and your life) with a smaller home

Get more home for your money with these tips

Money Moments: Tips for selling your home

Money Moments: How to finance a home addition

How I did it: My house remodel

Are professional movers worth the cost?

Beyond the mortgage: Other costs for homeowners

Quiz: How prepared are you to buy a home?

What is a home equity line of credit (HELOC) and what can it be used for?

Building a dream home that fits your life

10 questions to ask when hiring a contractor

5 things to avoid that can devalue your home

How you can take advantage of low mortgage rates

What is an escrow account? Do I have one?

Is it the right time to refinance your mortgage?

What to know when buying a home with your significant other

What is refinancing a mortgage?

These small home improvement projects offer big returns on investment

Webinar: Mortgage basics: What’s the difference between interest rate and annual percentage rate?

Webinar: Mortgage basics: What is refinancing, and is it right for you?

Webinar: Mortgage basics: Prequalification or pre-approval – What do I need?

Webinar: Mortgage basics: How much house can you afford?

Webinar: Mortgage basics: How does your credit score impact the homebuying experience?

Webinar: Mortgage basics: Finding the right home loan for you

Webinar: Mortgage basics: Buying or renting – What’s right for you?

Webinar: Mortgage basics: 3 Key steps in the homebuying process

Is a home equity line of credit (HELOC) right for you?

How to use your home equity to finance home improvements

How do I prequalify for a mortgage?

Home equity: Small ways to improve the value of your home

Can you take advantage of the dead equity in your home?

8 steps to take before you buy a home

6 questions to ask before buying a new home

10 uses for a home equity loan

Webinar: Uncover the cost: Home renovation

How to spot a credit repair scam

6 essential credit report terms to know

What types of credit scores qualify for a mortgage?

Contributors to this article include: Mark Zandi, Chief Economist, Moody’s Analytics; Lois Johnson, Senior Director, U.S. Mobility, ADP; Andreas Strohschein, Enterprise Rewards Partner, Mobility, Roche/Genentech; Aaron Tyler, Mortgage Loan Officer, U.S. Bank; and, Russ Haynie, Principal, Russ Haynie Consulting Services.

U.S. Bank is not affiliated with any contributing individuals or companies mentioned in this article.

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.