Company disclosures show that Coinbase and Better Mortgage have expanded the range of Bitcoin pledged mortgage products. Eligible Coinbase One users can apply for a house purchase loan without selling BTC, and related services were opened on 12 August.

The mortgage structure follows traditional lending

According to Coinbase, the product was initiated by Better and responsible for follow-up services, and Coinbase provided encryption asset support. The first-in-place mortgage portion of the housing loan is still being implemented in accordance with the United States of America compliance mortgage standard, in the form of a regular compliance housing loan.

Unlike traditional mortgages, borrowers can use digital assets to support part of the down payment without first selling the bitcoin in their possession. Coinbase states that this design also avoided a direct reduction of BTC by the borrower.

First related loan completed in June

This operation completed its first Bitcoin-supported loan in June and subsequently entered a wider outreach. Coinbase states that, following the opening of the alternate list in June, the estimated loan size exceeded $260 million.

  • 76% alternate user is Coinbase One member
  • 60% indicate that the purchase is planned within 6 months

From the point of view of disclosure, the product is moving from early pilot to formal roll-out, and the focus of observation is shifting from individual cases to the sustainability of real needs.

Partially available 1% Subsidy

The company disclosed that Coinbase One, who had been granted a Better loan, was also entitled to a loaner subsidy equivalent to 1 per cent of the mortgage amount, up to $10,000. Better states that this subsidy is no longer limited to token support for mortgages, but also covers standard housing loans, housing net credit line loans and refinancing operations.

This means that Coinbase and Better are trying to extend encrypted asset support loans from a single innovative product to a more conventional US housing finance scenario.

Additional information:As originally stated, the owner of the product was not required to sell the BTC and was not subject to the additional bond notice.