Coinbase is teaming up with Better Home & Finance to allow homebuyers to use their Bitcoin as collateral for a down payment, without having to sell it.
Coinbase is opening a new path to homeownership for crypto holders.
The exchange has teamed up with Better Home & Finance to let people use Bitcoin or USDC as collateral when taking out a loan for a down payment on a home.
Borrowers don’t have to sell their cryptocurrency to get the loan, and the loan itself is completely separate from their regular mortgage.
Full story here:
Fannie Mae Plans First Crypto-Backed Mortgages with Coinbase Partnership
Bitcoin-Backed Loans Give Crypto Holders a New Path to Homeownership
This partnership solves a real problem for long-term crypto holders.
In the past, people often had to sell their cryptocurrencies or other digital investments to come up with the money for a down payment on a house. This sale usually resulted in taxes and meant they missed out on any future profits those assets could have earned.
Now, buyers can secure a loan against their Coinbase holdings instead.
Reuters reported on March 26th that Better will handle the mortgage origination and servicing, and Coinbase will manage the collateral.
Kara Calvert, Coinbase’s head of U.S. policy, explains that this product fits into the current mortgage system’s safety measures. Once the loan is started, the interest rate and loan length won’t change, even if the price of Bitcoin goes up or down.
I’m seeing some interesting news from Reuters today: Coinbase is teaming up with Better Home & Finance. This partnership will let people use their Bitcoin or USDC as collateral when applying for a down payment loan – essentially, they can use crypto to help secure a mortgage.
This loan will be separate from the Fannie Mae-backed primary home…
— Wu Blockchain (@WuBlockchain)
No Margin Calls Even if Crypto Values Drop
A key risk with lending platforms that use cryptocurrency is the possibility of forced selling of assets when the market drops. Coinbase has taken steps to specifically address this issue.
According to a company representative, borrowers won’t face margin calls – demands to add more collateral – even if the value of their cryptocurrency falls, as long as they continue making their payments. This safeguard significantly reduces the risk of using cryptocurrencies as collateral, which can be very unpredictable in value.
The announcement comes as homeownership has grown increasingly out of reach.
I’ve been reading that the average first-time homebuyer is getting older – now around 40, compared to 32 just a couple of decades ago. It seems like there’s a new product coming out that’s trying to help people use their existing assets, even if it’s not in a typical bank account, to get into the housing market. It could be a big deal for folks who have wealth tied up in things other than traditional savings.
The product also addresses long-running criticism that crypto lacks real-world utility.
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2026-03-28 11:03