Crypto-Backed Mortgages Gain Momentum in US Housing Market

A new mortgage option is emerging in the US housing market, one that allows prospective homebuyers to use their cryptocurrency investments as collateral for a down payment.

Better Home & Finance Holding Co. has partnered with crypto trading platform Coinbase to introduce the crypto-backed mortgage, which will be available to eligible borrowers within the next three months.

The mortgage program is designed to make homeownership more accessible to Americans who own digital assets, according to Better's CEO, Vishal Garg. The companies noted that this new pathway can help prevent crypto investors from having to sell their holdings to fund a down payment, potentially missing out on future gains in the value of their investments.

The crypto-backed mortgage will only be available for borrowers who pledge Bitcoin or USDC as collateral. The companies emphasized that the mortgage terms remain unchanged even if the borrower's crypto collateral drops in value.