Coinbase and Better Issue First U.S. Bitcoin-Backed Mortgage

Coinbase and Better Issue First U.S. Bitcoin-Backed Mortgage 1 hour ago By Boluwatife Adeyemi Boluwatife Adeyemi Senior Journalist Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen. Read full bio Why Trust CoinGape CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy , our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information. Highlights Coinbase and Better partnered to fund the first Fannie-Mae insured Bitcoin-backed mortgage. These firms plans to roll out the full product this summer. Loans are pledged with Bitcoin and USDC as collateral without liquidation. AD Get $10 Instantly + $50 Trial Access Crypto exchange Coinbase and mortgage lender Better Mortgage have partnered to issue the first Bitcoin mortgage in the U.S. This comes just months after mortgage giant Fannie Mae announced it would begin accepting crypto for mortgage down payments. Ad Ad Coinbase Announces Issuance Of First Bitcoin Mortgage In an X post , the crypto exchange announced that they had just funded the first-ever Fannie Mae-insured mortgage backed by BTC in the U.S. Better Mortgage was responsible for servicing the mortgage while Coinbase powered the transaction. The crypto exchange also announced that it plans to roll out this service nationwide this summer. According to a Yahoo Finance report, Coinbase and Better issued this Bitcoin mortgage to Joe and Amy of Ann Arbor, Michigan. Joe said he now has "positive feelings" about the mortgage industry, since their Bitcoin is safe and sound in a custody account that secures their down payment. He also expects the BTC price to rise over time, which could help with the mortgage. Commenting on the first Bitcoin mortgage, Vishal Garg, founder and CEO of Better, opined that crypto-backed conventional mortgages are a generational next step. He noted that American households are moving their money away from banks and into crypto and other assets, which makes this shift significant. Garg further said that the tokenized mortgage will expand from crypto and stablecoins to other digital assets, such as tokenized stocks. Meanwhile, Roy Zhang, Coinbase's director of product, noted that the Bitcoin mortgage process is entirely digital. He explained that the top crypto exchange connects its users with significant Bitcoin holdings to lenders that offer crypto-backed mortgages using their portfolios. "They click through on our product interface. They go through the application process on Better. Better approves them. They sign in to their Coinbase account, and with a single click, their bitcoin moves into a custodial wallet. And then they're done," he noted. Ad Ad Fannie Mae's Role In The Transaction The Better Mortgage CEO highlighted the importance of Fannie Mae's backing of the transaction. As CoinGape reported, Fannie Mae announced plans in March to begin accepting crypto for mortgage down payments. Garg noted that the fact that the Bitcoin mortgage complies with the underwriting requir