Coinbase Partners with Better Home & Finance for Crypto-Pledged Mortgages

Crypto exchange Coinbase Global has made a significant move in the world of Bitcoin DeFi by launching a mortgage structure with Better Home & Finance. This new partnership allows borrowers to pledge digital assets as collateral for down payments on standard conforming mortgages.

The setup involves taking out a standard conforming mortgage while using a separate loan secured by crypto holdings to cover the down payment. This model introduces constraints tied to pledged assets, with borrowers unable to trade collateral while it is locked.

Lenders have been gradually integrating crypto into mortgage underwriting, and this development follows several US lenders that recently incorporated crypto assets into their processes.