Coinbase Expands US-Wide Bitcoin and USDC-Backed Mortgages With Better Mortgage

America’s largest crypto exchange, Coinbase, and mortgage giant Better Mortgage have officially partnered to expand Bitcoin and USDC-backed conforming mortgages to the 120 million home buyers and 50 million Bitcoin users all over the US.

Coinbase partners with Better Mortgage for Bitcoin-backed mortgages 

According to a joint announcement made today, the product lets homebuyers pledge their Bitcoin or USDC for home loans without liquidating them or triggering capital gains taxes.

Backed by Fannie Mae, the product offers the standard mortgage loan in addition to a down payment loan. The latter is backed by the client’s cryptocurrency at 250% of the loan amount for Bitcoin and 125% for USDC. Both loans share the same interest rate and payment schedule, conveniently enabling a combined monthly payment.

Once approved, Coinbase Prime powers a transfer of the client’s crypto assets to a Better Mortgage custodial escrow account. This means that during the loan payment period, users cannot withdraw or trade these digital assets. They, however, retain 100% market upside gains during that period.

Volatility, terms of liquidation and perks 

Unlike standard margin loans, price fluctuations will not trigger margin calls or alter the mortgage terms. Pledged cryptocurrencies are only subject to liquidations should the client defer payment for 60 days.