Better Home & Finance Partners with Coinbase on Crypto-Backed Mortgage Option

Homebuyers who have invested in certain cryptocurrencies may soon have a new option for funding their down payment on a home. In a move to make homeownership more accessible, Better Home & Finance Holding Co. has partnered with Coinbase to offer a mortgage backed by cryptocurrencies.

The crypto-backed mortgage will allow borrowers to pledge their holdings of Bitcoin or USDC as collateral for their down payment without having to sell them. This means that investors won't have to give up potential future gains in the value of their cryptocurrency, unlike selling it for cash would require.

However, if the borrower fails to make their mortgage payments for 60 days, their crypto collateral will be at risk of liquidation. The type of cryptocurrencies accepted as collateral is limited to Bitcoin and USDC, which is a stablecoin pegged to the value of the US dollar.