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Finance & Wealth
May 28, 20266 views2 min read

Bitcoin-Backed Mortgages Launch as Coinbase and Better Home Partner on New Loan Program

Better Home and Finance and Coinbase launched a program in May 2026 allowing homebuyers to use Bitcoin or USDC as collateral for mortgage down payments. The product targets crypto holders who want to buy homes without selling their digital assets.

Bitcoin-Backed Mortgages Launch as Coinbase and Better Home Partner on New Loan Program
Source:Experian

Better Home and Finance and Coinbase launched a new mortgage program this month that allows homebuyers to use Bitcoin or USDC stablecoin as collateral for down payments, without requiring them to sell their cryptocurrency holdings.

Under the program, borrowers pledge their crypto assets as collateral. The assets remain in a Coinbase custody account during the loan term. If the value of the collateral drops below a set threshold, borrowers must add more crypto or convert some to cash.

The product targets crypto investors who have significant digital asset holdings but limited cash for a down payment. Interest rates on the loans are higher than conventional mortgages, reflecting the added risk.

"There are millions of people sitting on crypto gains who want to buy a home," said Better CEO Vishal Garg. "We built a product for them."

Financial advisors urge caution. Cryptocurrency prices are volatile, and a sharp drop in Bitcoin's value could trigger a margin call that forces a borrower to liquidate assets at a loss.

The program is currently available in 12 states. Better and Coinbase plan to expand to additional markets later in 2026.

Regulators have not issued specific guidance on crypto-backed mortgages. The Consumer Financial Protection Bureau said it is monitoring the product category.

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