US launches first crypto-backed mortgage allowing BTC and USDC as collateral for home loans.
The Trump administration, through a partnership between Better Home & Finance and Coinbase, introduced the first conforming mortgage that allows borrowers to use Bitcoin (BTC) or USDC stablecoin as collateral, backed by Fannie Mae. This new mortgage model lets borrowers pledge crypto assets to support down payments and closing costs without selling their holdings, avoiding capital gains taxes. While payments must still be made in US dollars, this innovation opens the door for millions of crypto holders to leverage their digital assets in home buying. However, the volatility of crypto collateral presents new risks that lenders and borrowers need to monitor closely.
➤ The US has launched the first crypto-backed mortgage allowing Bitcoin and USDC as collateral for home loans, facilitated by Better Home & Finance and Coinbase. ➤ This innovation enables borrowers to use digital assets for down payments and closing costs without selling them, potentially avoiding capital gains taxes. ➤ While a significant step for crypto holders, the inherent volatility of crypto collateral introduces new risks for lenders and borrowers.