Coinbase Unveils Crypto-Backed Mortgages in US Partnership

Coinbase and Better Mortgage have launched a new mortgage product that allows borrowers to use Bitcoin as collateral. This means borrowers can pledge their BTC instead of putting up the entire down payment in cash.

The arrangement does not involve margin calls triggered by normal market movements. For example, a borrower buying a $500,000 home could pledge $250,000 in Bitcoin to support a $100,000 down payment.

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

This product is not new - Ledn, the Canadian crypto lender, introduced a similar product in December 2021. However, Coinbase's entry into this space is notable.