- Borrowers can pledge crypto as collateral for a second loan that funds the down payment on a home.
- The collaboration between Fannie Mae and Coinbase is seen as a paradigm shift for crypto.
Coinbase’s collaboration with Fannie Mae on crypto-backed mortgages ushers in a new era for cryptocurrency, according to industry insiders.
The play is less about immediate changes and more about setting a structural precedent, said David Duong, Coinbase’s global head of investment research.
“Allowing borrowers to use Bitcoin or USDC as pledged collateral — rather than selling it — incrementally reinforces the narrative of crypto as productive collateral and deepens the link between onchain wealth and the real economy, particularly US…
