Coinbase and Better launch crypto-backed down payments

Coinbase Global, Inc. and Better Home & Finance Holding Company have announced a partnership to allow homebuyers to use cryptocurrency as collateral for down payments. This initiative represents a significant attempt to integrate digital assets into the traditional housing market by allowing prospective owners to secure loans against the bitcoin or USDC held in their Coinbase accounts. These loans are structured to remain separate from the primary home mortgage, which is typically backed by FANNIE MAE.

By utilizing this product, homebuyers can avoid the necessity of selling their digital assets to fund a purchase, a process that usually requires conversion to cash. This approach allows customers to maintain their investment positions for longer, potentially benefiting from future price increases while deferring capital gains tax liabilities. The move also addresses long-standing criticisms regarding the practical utility of cryptocurrencies in mainstream commerce.