Coinbase and Better Mortgage Pioneer Crypto-Backed Mortgages

U.S. cryptocurrency exchange platform Coinbase and mortgage lender Better Mortgage recently completed the first mortgage loan backed by Bitcoin and the U.S. dollar stablecoin USD Coin (USDC), supported by Fannie Mae.

The innovative loan allows homebuyers to use their holdings of Bitcoin or USDC as collateral, rather than requiring a traditional cash down payment.

This concept is not entirely new; it's an extension of 'pledged asset mortgages' (PAMs), which permit borrowers to pledge a portion of their investment assets, such as stocks, to the lender.

The companies plan to roll out this type of loan to more eligible borrowers across the country by summer.