Crypto-Backed Mortgages Emerge in US Housing Market

A groundbreaking crypto-backed mortgage product has been launched by Better Home and Finance in partnership with Coinbase.

The product allows homebuyers to finance their homes using cryptocurrency, rather than traditional down payments. Borrowers take out two simultaneous loans - a primary mortgage and a secondary loan backed by the borrower's cryptocurrency - which remains locked in a Coinbase Prime account until the loan is repaid.

While advocates are celebrating the move as a major adoption milestone, economist Peter Schiff has expressed concerns about the product's mechanics. He argues that homebuyers are essentially financing 100% of the home's purchase price and facing increased interest costs. Furthermore, Schiff criticizes the option to pledge USD Coin (USDC), a stablecoin pegged to the U.S. dollar, which he believes defies logic as it has no price upside.