Better launches Bitcoin-backed mortgages with Coinbase

• Better Mortgage can reuse Bitcoin pledged by borrowers under its new home-loan product with Coinbase.
• The product has attracted $360 million in requested loan volume since its public launch.
• Borrowers cannot recover their Bitcoin until the conventional mortgage is repaid or refinanced.

Better Mortgage has launched its Bitcoin-backed mortgage product with Coinbase, allowing borrowers to use Bitcoin (CRYPTO) as collateral for home loans.

The product has attracted $360 million in requested loan volume since becoming generally available, up from $260 million from its earlier waitlist.

“Better may rehypothecate the pledged bitcoin, provided it keeps equivalent Bitcoin on hand to return the collateral at loan payoff,” Better said.

Borrowers pledge $2.50 of Bitcoin for every $1 borrowed towards a home deposit, while Better holds the crypto through Coinbase Prime.

Bitcoin price falls do not trigger margin calls or automatic liquidations, although Better can sell the collateral after missed payments and 60 days of delinquency.

Borrowers cannot recover their Bitcoin early by repaying the crypto-backed loan, as the collateral remains pledged until the main mortgage is repaid or refinanced.

Only Bitcoin is currently accepted as collateral, while Coinbase provides custody and technology and Better originates both loans.

At the time of reporting, Bitcoin price was $80,286.84.