Coinbase and mortgage lender Better Home & Finance are joining forces to let qualified homebuyers put up Bitcoin and USDC as collateral for their down payments. The service, slated to launch in summer 2024, marks one of the first mainstream integrations of crypto into the mortgage process.
How the crypto collateral model works
Under the program, borrowers won't have to sell their crypto to raise cash for a down payment. Instead, they pledge Bitcoin or USDC as collateral, similar to putting up stocks or bonds for a loan. The lender, Better Home & Finance, will assess the value of the crypto and the borrower's creditworthiness. The arrangement aims to give crypto holders a way to access homeownership without triggering a taxable sale.
Why Coinbase paired with a traditional lender
Coinbase has been pushing deeper into financial services beyond simple trading. Partnering with an established mortgage originator gives the exchange a foothold in the trillion-dollar housing market. Better Home & Finance, for its part, gains a pipeline of crypto-wealthy borrowers who might otherwise struggle to convert digital assets into traditional down payment funds without a liquidity event.
Timeline and what's next
The service is expected to go live in summer 2024, though Coinbase and Better Home & Finance haven't announced a specific date. The rollout will likely be limited to qualified borrowers in certain states, pending regulatory checks. Both companies are betting that demand for crypto-backed lending will grow as more Americans hold digital assets and look to deploy them in the real economy.
