Coinbase, one of the largest U.S. cryptocurrency exchanges, has partnered with digital mortgage lender Better Home & Finance to launch a first-of-its-kind mortgage down payment program. The initiative, set to debut this summer, will allow qualified borrowers to pledge Bitcoin (BTC) or USD Coin (USDC) as collateral to meet the down payment requirement on a home loan.
Under the program, borrowers won’t need to sell their crypto holdings to raise the necessary cash. Instead, they can stake their BTC or USDC with Better Home, which will assess the collateral value and approve the loan amount. Coinbase will serve as the custodian, holding the pledged assets securely throughout the loan term.
This model benefits crypto holders by preserving their asset exposure while accessing traditional mortgage financing. It also helps avoid taxable events from selling and shields borrowers from short-term price volatility. The program marks a significant step in bridging decentralized finance with mainstream home lending, and it is expected to be available to eligible customers over the coming months.