Better Home & Finance and Coinbase Launch Crypto-Backed Mortgage Option

Better Home & Finance Holding Co., a real estate services company, has announced a partnership with Coinbase to offer a unique mortgage option that utilizes cryptocurrencies as collateral. This new product aims to increase accessibility for homebuyers who have invested in Bitcoin or USDC, a stablecoin pegged to the US dollar.

The crypto-backed mortgage will allow borrowers to pledge their holdings and transfer them to Coinbase as collateral without having to sell their assets for cash. This means that homebuyers can maintain control over their investments while still meeting their down payment requirements.

Better noted that the mortgage is designed in accordance with Fannie Mae guidelines, which makes it eligible for significantly lower interest rates compared to other crypto-backed loans. The company has stated that this partnership will introduce a new pathway to homeownership for the estimated 52 million Americans who own digital assets.