Coinbase Unveils Bitcoin-Backed Mortgages in US Market

Crypto lender Coinbase has expanded its mortgage offerings in the US by introducing Bitcoin-backed mortgages. The new product pairs a standard conforming mortgage with a separate loan secured by pledged Bitcoin, allowing borrowers to use their digital assets as collateral instead of cash.

The arrangement does not involve margin calls triggered by market movements. For example, a borrower 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 originates and services both loans, while Coinbase provides the infrastructure for holding the crypto collateral. Borrowers remain responsible for the mortgage and the collateralized loan, which is not exactly novel in the industry.