Coinbase and Better Mortgage Team Up for Crypto-Backed Mortgages Nationwide

Coinbase has expanded its US-wide mortgage offerings by partnering with Better Mortgage to provide Bitcoin and USDC-backed conforming mortgages. The product allows homebuyers to pledge their cryptocurrency as collateral without liquidating it or triggering capital gains taxes.

The mortgages, backed by Fannie Mae, offer a standard loan in addition to a down payment loan that is secured by the client's cryptocurrency at 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 transfers the client's crypto assets to a Better Mortgage custodial escrow account, where they remain locked until the loan is paid off. However, clients retain all market upside gains during this period.

The program features interest rates 0.5% to 1.5% higher than standard non-crypto 30-year fixed mortgages and requires no margin calls due to price fluctuations. The loans are available exclusively to verified Coinbase One members, who also receive a 1% lender rebate (capped at $10,000) applied directly to closing costs.

The program was initially made available to the 1 million Coinbase One paying subscribers on August 12 and has since expanded to cover home loans, HELOCs, and refinances. The partnership follows Fannie Mae's March approval for accepting cryptocurrency as loan collateral and a June test phase that attracted $260 million in projected loan demand.