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Bitcoin-Backed Mortgages Now Available in the US

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A new mortgage product has been launched in the US by Better Mortgage and Coinbase. This innovative product allows homebuyers to use Bitcoin as collateral for down payments, without having to sell their cryptocurrency. Applicants must pledge at least $250% of the down payment loan in Bitcoin, which will be held in custody until the mortgage is paid off.

The loan combines a conventional mortgage with a Bitcoin-backed down payment loan, sharing the same interest rate and repayment schedule. Market fluctuations in Bitcoin do not trigger margin calls, but missed payments over 60 days can lead to Bitcoin liquidation.

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