The integration of traditional finance with the crypto ecosystem takes another significant step forward. The joint product from Better Home & Finance and Coinbase, which allows digital assets to be used as collateral for mortgage loans, is now open to all Coinbase One subscribers. Previously, the program was available only to a limited group of users, but now scaling brings this tool to the mass market.
The mechanics of the product work as follows: approved borrowers gain the ability to pledge their crypto assets, including bitcoin, to secure financing for real estate purchases. This solution fundamentally changes the approach to liquidity—holders of digital coins no longer have to sell their assets for major purchases, preserving long-term growth potential.
Of particular interest is the loyalty bonus program. Each approved borrower will receive 1% of the loan amount as compensation for closing costs, though the maximum amount of such a reward is capped at $10,000. This is substantial support, given that mortgage closing costs in the U.S. often reach significant sums.
The announcement of the first such program came back in March, and now, after several months of pilot testing, the product has reached full capacity. Coinbase continues to aggressively expand its ecosystem, transforming from a simple exchange into a full-fledged financial partner.
From my point of view, this is an important signal for the market. By allowing bitcoin to be used as collateral, companies not only enhance its utilitarian value but also legitimize cryptocurrencies as an asset class in the eyes of traditional credit institutions. However, it is worth remembering the volatility: in the event of a sharp price drop, the borrower may face a margin call, which adds risks to long-term obligations.