Better Mortgage and Coinbase Allow Reuse of Bitcoin Collateral in Mortgage Loans

Better Mortgage has introduced a bitcoin‑backed mortgage product in partnership with Coinbase. The loan structure permits the lender to reuse the Bitcoin pledged as collateral, while borrowers are restricted from accessing their crypto until the primary conventional mortgage is either fully paid off or refinanced.

How the Bitcoin‑Backed Mortgage Works

When a borrower applies for a mortgage through Better Mortgage, they can pledge Bitcoin as part of the loan security. The pledged Bitcoin remains under the control of the lender, which may deploy it for other purposes during the life of the loan.

Borrower Restrictions

The agreement stipulates that borrowers cannot retrieve or sell their pledged Bitcoin until the underlying conventional mortgage is completely satisfied or is refinanced into a new loan. This condition ensures that the lender retains full collateral coverage throughout the loan term.

Implications for Users

• Borrowers gain access to mortgage financing while leveraging existing Bitcoin holdings.
• Lenders obtain additional flexibility by being able to reuse the pledged Bitcoin.
• The collateral remains locked until the primary mortgage obligation is fulfilled.