Better and Coinbase Launch Bitcoin-Backed Mortgage Product That Allows Collateral Reuse
Better Mortgage and Coinbase have launched a bitcoin-backed mortgage product that allows Better to reuse borrowers' pledged bitcoin as collateral.
Why it matters
The significance of this development is limited as it is a single-source report, though it demonstrates continued integration of cryptocurrency assets into traditional financial products.
Key facts
Better Mortgage can reuse pledged bitcoin as collateral
Reported by CoinDesk
Borrowers can pledge bitcoin at a 250% ratio to fund a home down payment
250 %Reported by CoinDesk
Borrowers must meet standard income and credit rules for the main mortgage
Reported by CoinDesk
Borrowers cannot recover their crypto until the conventional mortgage is fully repaid or refinanced
Reported by CoinDesk
Bitcoin price drops don't trigger margin calls or automatic liquidations
Reported by CoinDesk
Crypto is only sold if a borrower misses their combined monthly payments
Reported by CoinDesk
Pre-applications have reached $360 million in requested loan volume since launch to the general public
360,000,000 USDReported by CoinDesk
Borrowers who joined the earlier waitlist projected $260 million in requested loan volume
260,000,000 USDReported by CoinDesk
What happened
Better Mortgage and Coinbase have made generally available a bitcoin-backed mortgage product, according to CoinDesk. The product allows borrowers to pledge bitcoin at a 250% ratio to fund a home down payment, though they must still meet standard income and credit rules. Better Mortgage can reuse the pledged bitcoin, and borrowers cannot recover their collateral until their conventional mortgage is repaid or refinanced. The companies reported that pre-applications have reached $360 million in requested loan volume since the general availability launch. At closing, borrowers receive two loans: a standard Fannie Mae-conforming mortgage secured by the home, and a second loan for the down payment secured by the bitcoin and a second lien on the property.
How the story developed
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| CoinDesk Crypto media | Better and Coinbase’s bitcoin-backed mortgages can reuse borrowers’ collateral | Original |
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