Coinbase and Better Mortgage launched their token-backed mortgage product. The product is now generally available to customers in the United States.
Borrowers can pledge Bitcoin as collateral for a home loan. This allows them to secure financing without selling crypto assets.
Better originates and services the mortgages. Coinbase provides the underlying crypto collateral technology.
The loans conform with Fannie Mae guidelines. This makes them a standard mortgage product.
The initiative aims to expand homeownership access. It targets a younger generation of buyers. This demographic increasingly holds wealth in digital assets.
Approved Coinbase One members receive a 1% rebate on the mortgage value. This rebate is a lender-funded credit toward closing costs. The credit is capped at $10,000.
A waitlist for the product opened in June. It indicated strong early demand. The waitlist showed over $260 million in projected loan volume.