Coinbase, Better Open Crypto-Collateral Mortgages To Coinbase One Members

The launch allows crypto investors to convert onchain wealth into home-buying power without having to sell their holdings.

• Coinbase One users can pledge crypto without selling it via Better Mortgage's crypto-backed mortgage program.
• For Coinbase One customers, Better would offer 1% lender credit on mortgages, HELOCs, and refinances up to $10,000.
• The initiative comes under Fannie Mae’s guidelines, with a queue indicating substantial demand for over $260 million in loans.

Shares of Coinbase (COIN) and Better Mortgage (BETR) both traded lower on Wednesday after the firms announced that they would provide crypto owners the ability to purchase property with Bitcoin (BTC) and other cryptocurrencies without needing to sell the tokens themselves.

The two firms said the crypto-backed mortgage is available to eligible Coinbase One users. Better would give as much as $10,000 in closing costs credits to the users who qualify and the credit will be applied against closing expenses. It will also be shown on the borrower's closing disclosure. 

How Will It Work?

According to the companies, the 1% lender credit applied to all of Better's home financing products offered to Coinbase One members, including standard mortgages, home equity line of credit (HELOCs) and refinances. The expanded offer became effective mid August.