U.S.-listed cryptocurrency exchange Coinbase (COIN) is working with Fannie Mae-approved mortgage firm Better Home & Finance Holding Co. (BETR), to enable crypto holders to use their digital assets as down payment collateral when buying a home.
The mortgage is structured as a conforming loan backed by Fannie Mae, meaning it carries the same protections and standards as traditional mortgages, according to a press release on Thursday.
Borrowers pledge bitcoin or the USDC stablecoin as collateral to fund their down payment, allowing them to keep their assets intact and avoid creating a taxable event by spending them. In the case of USDC, they can keep earnings rewards, Coinbase said.
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