Coinbase and Better are starting to bring crypto into the home down payment process in the U.S.
🏠 Coinbase has partnered with Better to launch a program that lets homebuyers use $BTC or $USDC in their Coinbase accounts as collateral for a separate loan used for the down payment. This loan is kept separate from the main mortgage, so buyers do not need to sell their crypto to raise cash upfront.
💡 The key point is that digital assets can be retained instead of being sold, allowing crypto holders to keep their exposure while avoiding an early taxable sale. It also shows crypto being tested in a more practical financial role rather than remaining purely a speculative trading asset.
🔒 During the loan period, the crypto used as collateral is locked in custody and cannot be traded. Better handles the full loan process, while mortgage rates do not change just because BTC moves, and there is no margin call as long as the borrower continues making payments on time.
⚠️ Even so, this model still makes the home purchase process more complex because buyers are taking on an additional layer of leverage on top of the main mortgage. It is a notable step for the U.S. crypto market, but the real outcome will still depend on early demand and how well risks are managed in the first phase.