Key Highlights
- Better partnered with Coinbase to introduce a home loan product accepting Bitcoin or USDC as deposit collateral.
- Borrowers can retain their cryptocurrency holdings and sidestep capital gains tax liabilities.
- The loan framework adheres to Fannie Mae guidelines and serves cryptocurrency investors pursuing homeownership.
- Better confirmed the program eliminates margin call requirements during Bitcoin price drops.
- Collateral liquidation occurs exclusively when borrowers miss payments for more than 60 days.
A new mortgage offering from Better and Coinbase permits cryptocurrency collateral under Fannie Mae compliance standards. Economist Peter Schiff expressed skepticism about the framework and suggested it increases lender vulnerability. The announcement arrives amid Bitcoin trading fluctuations beneath the $70,000 threshold.
Cryptocurrency Mortgage Initiative Receives Sharp Critique
Better and Coinbase revealed their collaborative mortgage program on March 26. The partnership enables borrowers to use Bitcoin or USDC holdings as down payment security rather than converting assets to cash. The companies emphasized conformity with Fannie Mae requirements.
Better positions itself as the pioneering AI-driven mortgage provider. The firm indicated the service addresses millions of American cryptocurrency holders who possess limited liquid capital. The structure allows borrowers to preserve their digital asset positions and avoid tax consequences from sales.
The program design eliminates margin call triggers linked to Bitcoin value decreases. Collateral liquidation procedures activate solely following 60 consecutive days of missed payments. The companies presented the offering as an opportunity to expand homeownership possibilities for digital asset investors.
Peter Schiff challenged the mortgage framework through statements on X. He stated, “Allowing homebuyers to pledge Bitcoin as a down payment on a mortgage is a horrible idea.” He emphasized the approach “substantially increases the risk for lenders.”
Schiff contended that lenders face restricted options regarding pledged Bitcoin until default situations emerge. He noted, “If Bitcoin crashes, the down payment vanishes.” He subsequently characterized the program as “a scam to keep people from selling their Bitcoin to buy houses.”
Bitcoin Market Movements Provide Backdrop for Discussion
The Bitcoin price descended under $70,000 and approached $69,000 in recent market activity. Trading data indicated a decline exceeding 2% across 24 hours and approaching 3% over seven days. The 30-day performance chart revealed gains near 6%.
Ethereum experienced similar downward pressure and dropped beneath $2,100 during the identical timeframe. Widespread market weakness affected leading cryptocurrencies. Bitcoin currently trades more than 45% under its October 2025 peak value.
Certain market observers characterized the present situation as short-term holder capitulation. Michaël van de Poppe suggested these phases frequently correspond with extended accumulation patterns. He referenced inexperienced investors departing during price corrections.
Better and Coinbase introduced their mortgage solution throughout this volatile pricing environment. The partners emphasized borrowers maintain their cryptocurrency market exposure. Schiff continued asserting that connecting residential financing to unstable collateral may amplify lender risk profiles.
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