Coinbase and Better Mortgage Unveil Crypto-Backed Mortgages for Homebuyers

Crypto holders can now buy homes without selling their holdings thanks to a new token-backed mortgage launched by Coinbase and Better Mortgage.

The product allows crypto holders to use their digital assets as collateral for a mortgage, making it easier for them to purchase a home. According to the companies, this is aimed at first-time homebuyers who are increasingly holding wealth in cryptocurrency rather than traditional bank accounts.

Better originates and services the mortgage while Coinbase powers the crypto collateral layer, with the product structured to meet Fannie Mae conforming guidelines. Eligible Coinbase One members receive a lender credit equal to 1% of their mortgage value, saving up to $10,000 in closing costs across standard mortgages, HELOCs, and refinances.

The waitlist for the product, which was opened in June, generated over $260 million in projected loan volume before launch. 76% of applicants are already Coinbase One members, and 60% plan to buy within six months.