Key Takeaways
- Fannie Mae supports first crypto-backed public mortgage execution in the country
- Up to 37% of waitlisted registrants hold crypto worth over $500,000
U.S. Mortgage Execution Backed by Bitcoin
On June 4, Coinbase and online mortgage company Better announced their joint execution of the first Bitcoin-backed public mortgage in the United States. Fannie Mae, the U.S. government support agency, is backing the crypto-backed mortgage, the first backed by the agency.
Joe Amy and his wife from Ann Arbor, Michigan, were the first loan recipients. They were eligible for a 30-year fixed-rate mortgage. The process of the mortgage involves bitcoin being transferred to custodial wallets and instead of being sold is used as collateral.
To receive 1% rebates are Coinbase One members. Their rebates are equivalent to 1% of their mortgage amount (up to $10,000) to lower interest rates and to cover closing costs.
In March this year, Coinbase announced a partnership with Better. One of the advantages of the collaboration for users is that you can keep Bitcoin or USDC in your Coinbase account as a down payment, enabling you to not being required to pay capital gains taxes from selling while earning benefits from price appreciation.
Coinbase Users Dominate Waitlist, Nationwide Expansion This Summer
Bitcoin and USDC are currently the only cryptocurrencies available as collateral. Better chief executive Vishal Garg announced plans to expand the coverage to other digital assets such as SpaceX shares and tokenized Tesla shares in the future.
In its analysis, Better says waitlist data show that 76% of registrants are Coinbase users, 37% hold cryptocurrency worth over $500,000, and 63% are thinking of purchasing a home within the next six months. Based on this, Better says the expected loan amount at $250 million.
Rollout for the rest of the country is planned for this summer, while registration for the waitlist is currently being conducted on Better’s website.
