Documenting crypto as a source of funds
An underwriter accepting crypto-derived funds wants three things: proof the asset was yours, proof of the conversion to dollars, and a traceable path from conversion to closing.
An underwriter accepting crypto-derived funds wants three things: proof the asset was yours, proof of the conversion to dollars, and a traceable path from conversion to closing. Produce all three and you've sourced the funds — no 60–90 day seasoning period required by most crypto-experienced lenders.
The three pieces
Proof of ownership — cryptographic wallet verification (a signed message or verified micro-transfer; screenshots don't count), holding history, or exchange statements in your name. Conversion records — what was sold, when, at what price, through what venue, and what it netted in USD. Flow of funds — the gold standard is one hop: conversion venue to escrow, by wire. Every intermediate stop adds a statement to collect and a question to answer.
What breaks the chain
Selling informally months ahead, routing through multiple personal accounts, mixing crypto proceeds with other deposits, using a wallet you can't prove is yours, or undocumented peer-to-peer sales. Each turns sourced funds back into an unexplained deposit — and unexplained deposits get the seasoning speech.
RealOpen produces the full file by default: wallet verification up front, OTC conversion at closing, and a direct wire to escrow — packaged as the RealScore™ report (ownership and holdings) and the Transaction Record (conversion and flow of funds). Lenders have released closing docs on exactly that basis, with the down payment reaching escrow about two days before closing.