Coinbase Enters Crypto-Backed Mortgage Market in US

Crypto lender Coinbase has expanded its services to include Bitcoin-backed mortgages in the US. The company, in collaboration with Better Mortgage, offers a mortgage product that pairs a standard conforming mortgage with a separate loan secured by pledged BTC.

Borrowers can pledge their Bitcoin as collateral instead of using cash for the down payment. For instance, someone buying a $500,000 home could pledge $250,000 in Bitcoin to support a $100,000 down payment. The exact amount depends on the lender's underwriting and collateral requirements.

Better Mortgage states that the pledged BTC must be worth at least 250% of the down payment loan amount. The Bitcoin is held in Better's custodial account on Coinbase Prime.

This product was initially introduced by Better in March, allowing borrowers to pledge either Bitcoin or USDC. Now, it is broadly available, and eligible Coinbase One members can receive a lender-funded credit equal to 1% of the mortgage amount (capped at $10,000).