Coinbase-Linked Crypto Mortgage Lets Buyers Use Bitcoin as Collateral

The structure allows home purchases without selling Bitcoin, using 250% BTC collateral and combining two loans into a single monthly payment.

BTC

Summary

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Terms & Concepts
  • Collateral: An asset pledged to secure a loan, which lenders can claim if the borrower fails to repay.
  • Bitcoin-backed loan: A loan secured by Bitcoin rather than sold holdings, allowing borrowers to keep market exposure while accessing liquidity.
  • Loan-to-value ratio: A lending metric that compares the loan amount with the value of pledged collateral; higher collateral requirements reduce lender risk.