Crypto-Backed Mortgages: Better Home & Finance Partners with Coinbase

Better Home & Finance Holding Co., a real estate services company, has partnered with Coinbase to introduce a mortgage-backed by cryptocurrencies. This innovative approach allows homeowners to use their crypto holdings as collateral without selling them, providing an alternative to traditional financing methods.

The new mortgage offering will be available in the next three months and will be guaranteed by Fannie Mae, enabling borrowers to secure lower interest rates. According to Vishal Garg, CEO of Better, this partnership aims to make homeownership more accessible for Americans who own digital assets.

The use of cryptocurrency as collateral is designed to preserve the potential future gains in the value of the crypto holdings, unlike traditional methods that require selling the assets. However, borrowers' crypto collateral will be at risk of liquidation if they fail to make their mortgage payments for 60 days.