Coinbase, together with Better Home & Finance, has introduced an innovative mortgage product that complies with Fannie Mae standards and can be included in securitized instruments. The loan model consists of two parts: the primary - a classic mortgage, and the additional - the equivalent of a down payment, which can be secured with Bitcoin or USDC.
The key feature is the absence of margin calls when the value of crypto assets falls: as long as the borrower makes regular mortgage payments, Coinbase does not require additional funds. Liquidation is only possible if payments are overdue for more than 60 days. This mechanism reduces the impact of cryptocurrency volatility on traditional finance and makes the product compatible with securitization requirements.
In addition, a 1% discount (up to $10,000) is provided to cover transaction costs. In the future, the list of supported assets is expected to expand - adding other cryptocurrencies and tokenized RWAs. However, issues of trust and price instability remain subjects of debate.