Coinbase and Better launch crypto-backed home loans, allowing Bitcoin holders to buy property without liquidating their holdings.

Mars Finance reports that Coinbase has partnered with the mortgage platform Better Home & Finance to launch home loan products backed by Bitcoin or USDC, guaranteed by Fannie Mae. Borrowers do not need to sell their crypto assets; they can use them as collateral to apply for an independent loan to cover the down payment while still qualifying for a standard mortgage. Ultimately, borrowers will hold two loans with the same interest rate and repayment period, with combined monthly payments. The product complies with Fannie Mae guidelines and offers significantly lower interest rates than traditional crypto-backed loans. If Bitcoin prices fall, the collateral will not be forcibly liquidated due to market fluctuations, only facing liquidation risk after 60 days of missed payments. Borrowers using USDC as collateral can offset part of the loan interest with the income generated from the collateral. Coinbase One members who complete transactions through Better can receive a rebate of up to 1% of the mortgage amount, capped at $10,000. Both companies plan to expand the eligible collateral range in the future to include tokenized stocks and fixed-income assets.