Amplification of signals with fluctuating envelopes inevitably leads to distortion because of nonlinear behavior of the power amplifier (PA). Digital predistortion can counteract these nonlinear effects. In this paper, a digital predistortion architecture is presented which is based on the calculation of correlation functions using coarsely quantized signals. The crosscorrelation functions are transformed to the frequency domain and the spectra are used to calculate the coefficients of the predistorter memory polynomial. This method has reduced complexity and slightly improved average performance in comparison with existing schemes.