Better and Coinbase Roll Out Crypto-Backed US Mortgage Program

Better Mortgage and Coinbase have made their crypto-backed mortgage program generally available to eligible Coinbase One members in the US.

The program enables members to pledge Bitcoin or USDC as collateral for a separate loan used to fund the cash down payment on a home.

This allows borrowers to retain their digital assets rather than selling them to raise cash, potentially avoiding an immediate taxable sale.

The first-lien mortgage is originated and serviced by Better and designed in accordance with Fannie Mae guidelines, making it a standard conforming mortgage. It remains separate from the loan secured against the borrower’s cryptocurrency.

Better and Coinbase initially announced the program in March and completed their first mortgage under it in June. The wider offer became available to eligible Coinbase One members on August 12.

Borrowers must still qualify for a mortgage through Better and satisfy its eligibility and underwriting requirements.

However, borrowers take on a separate crypto-secured loan alongside their mortgage and remain exposed to changes in the value of the pledged digital assets.

Coinbase One members approved for Better home-financing products can also receive a lender-funded credit equal to 1% of the mortgage value, capped at $10,000. The credit is applied against closing costs and recorded on the borrower’s closing disclosure.

The incentive also covers Better’s standard mortgages, home equity lines of credit and refinancing products.

Better said its earlier waiting list indicated more than $260m in projected loan volume, with approximately 60% of respondents intending to buy a property within six months. Those figures represent expressions of interest rather than completed mortgages.

The wider rollout moves the companies’ crypto-backed down-payment model into broader US availability while keeping the digital-asset loan separate from the conforming first-lien mortgage.