Coinbase Global, Inc. (COIN.US) and BETTER HOME & FINANCE HOLDING (BETR.US) jointly announced on Thursday the launch of "token-secured mortgages," enabling borrowers to use cryptocurrency as collateral for home loans. According to the companies, these loans will be issued and serviced by BETTER HOME & FINANCE HOLDING and will be supported by Fannie Mae, similar to traditional compliant mortgages. Borrowers can use Bitcoin or the stablecoin USDC, issued by Circle, as collateral, with Coinbase providing custody and technical support. The core mechanism of this product allows eligible U.S. homebuyers to finance their down payments by pledging their crypto holdings without selling them, thereby avoiding potential capital gains taxes. Additionally, even if Bitcoin's price declines, the loan terms remain unchanged, and borrowers are not required to provide additional collateral. Industry experts note that this model offers a new liquidity channel for crypto holders, enabling participation in the real estate market without liquidating assets. Vishal Garg, CEO of BETTER HOME & FINANCE HOLDING, stated that the company aims to provide a new pathway for approximately 52 million Americans holding digital assets to achieve their homeownership goals. Analysts believe the introduction of token-secured mortgages signals a shift for cryptocurrencies from "investment tools" to "financial collateral." However, the widespread adoption of such products will depend on factors such as cryptocurrency price volatility, regulatory frameworks, and market acceptance.