Better Mortgage, Coinbase Expand Crypto-Backed Mortgages to Coinbase One Members

Better Mortgage and Coinbase have expanded a mortgage offering that lets borrowers use digital assets as collateral without selling them, making the service available to Coinbase One members.

The Block reported on Aug. 26 that Better Mortgage and Coinbase have formally offered token-backed conforming mortgages to Coinbase One members since Aug. 12. The companies first unveiled the product in March. The first-lien mortgage is structured as a standard conforming loan that follows Fannie Mae guidelines.

The product allows borrowers to fund a home purchase by pledging crypto holdings as collateral rather than liquidating them. The companies previously said Bitcoin and the dollar-pegged stablecoin USDC would be accepted as collateral for a down payment.

Coinbase One members approved for Better's qualifying home loan products can receive a credit equal to 1% of the loan amount, capped at $10,000. The benefit applies to standard mortgages, home equity lines of credit, or HELOCs, and refinancing. The credit is deducted from closing costs.

The companies said projected loan volume identified through a waitlist opened in June has exceeded $260 million. Among respondents, 76% were already Coinbase One members and 60% said they planned to buy a home within the next six months.

Ziggy Jonsson, Better Mortgage's chief technology officer, said the program offers a new path to homeownership for a generation that keeps a large share of its assets on-chain by allowing Coinbase One members to post crypto holdings as collateral instead of selling them.

Better Mortgage has originated more than $110 billion in loans to date. The company said 41% of customers who received preapproval met income and credit requirements but did not have enough cash for a traditional down payment.