Coinbase and Better open Bitcoin-backed mortgages to all

Buying a house usually means selling whatever you own to raise cash. Coinbase and Better Mortgage just made that optional for Bitcoin holders. On Wednesday, the two companies opened their Bitcoin-backed mortgage to all qualified US borrowers. Homebuyers can now pledge Bitcoin or USDC as collateral for a down payment instead of cashing it out. Fannie Mae, the government-backed mortgage giant, guarantees the loan, so it works like an ordinary conforming mortgage.

The idea isn't new for Coinbase and Better. They closed their first deal like this back in June, after building a waitlist worth over $260 million. What's new is that it's no longer limited to a small pilot group. The collateral rule is strict for a reason. Pledged Bitcoin has to be worth at least 250% of the down payment. That way, a price drop doesn't immediately wipe out the cushion. Crypto is volatile enough that lenders want that buffer before they'll touch it.

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What happens the first time Bitcoin drops hard after someone takes one of these loans? A sharp crash could force a borrower to post more collateral fast, or risk losing it. That's the real test. Does this become a normal mortgage option, or a product that only works in a rising market?