A 63-year-old investor used a $130,000 loan backed by his bitcoin holdings to fund a house deposit in the northeastern US, avoiding the need to sell his cryptocurrency. The product, launched by Better and Coinbase, allows borrowers to use digital assets as collateral while retaining ownership and potential upside. The initiative gained momentum after Bill Pulte, director of the Federal Housing Finance Agency, ordered Fannie Mae and Freddie Mac to consider crypto as a valid mortgage asset.
Borrowers must pledge crypto worth 2.5 times the loan amount, held in secure custody, alongside a traditional dollar mortgage. Jonathan, the borrower, pays 7.5% interest over 30 years, servicing both loans at nearly $5,000 monthly, betting that bitcoin’s growth will outpace costs. Since launch, thousands have joined the waiting list, with 36% holding over $500,000 in crypto.
While popular among tech entrepreneurs and founders, the product remains niche. In Europe, crypto-backed loans exist but no dedicated mortgage product is available. Regulatory caution persists, though US policy under Donald Trump has encouraged crypto integration into mainstream finance.
Source: Financial Times Companies · Summarized by HeadlinesBriefing