NEW YORK — Better Home & Finance and Coinbase said they are partnering to introduce token-backed mortgages, a move aimed at linking digital asset holdings with traditional home lending.
The companies said the initiative will allow borrowers to use cryptocurrency holdings as part of the mortgage underwriting process, potentially enabling customers to qualify for loans without liquidating their digital assets.
Under the partnership, Coinbase customers will be able to verify crypto holdings directly with Better, streamlining asset validation and incorporating those holdings into loan applications, the companies said in a joint announcement.
Executives said the effort is designed to address a growing segment of consumers whose wealth is increasingly held in digital assets but who may face challenges accessing traditional credit products.
‘Modernizing the Mortgage Experience’
“This partnership represents a step toward modernizing the mortgage experience,” Better said in a statement, adding that integrating crypto assets could expand access to homeownership for certain borrowers.
Coinbase said the collaboration reflects broader efforts to bring digital assets into mainstream financial services, particularly in areas such as lending and payments.
The companies did not provide detailed underwriting standards but indicated that risk controls and compliance measures would be incorporated to account for the volatility and regulatory considerations associated with cryptocurrencies.
Industry analysts have noted that while token-backed lending could offer flexibility, it also introduces new risks tied to price fluctuations and liquidity of digital assets. Lenders may need to apply conservative valuations or require additional safeguards to manage those risks.
