Coinbase and Better Mortgage Launch Crypto-Backed Mortgages Nationwide

Coinbase and Better Mortgage have launched a new program that allows homebuyers to pledge their Bitcoin or USDC as collateral for mortgages. The product, which is backed by Fannie Mae, offers conforming mortgages to 120 million potential homebuyers across the US.

The loan program lets homebuyers keep their cryptocurrency assets without liquidating them, avoiding capital gains taxes in the process. Pledged cryptocurrencies can be used as collateral for a down payment loan, with Better Mortgage offering 250% of the loan amount for Bitcoin and 125% for USDC. Both loans have the same interest rate and payment schedule.

Once approved, Coinbase Prime powers the transfer of cryptocurrency assets to a Better Mortgage custodial escrow account, where they cannot be withdrawn or traded during the loan period. However, users retain 100% market upside gains.