Better and Coinbase have launched a mortgage product letting homebuyers pledge Bitcoin (BTC) as collateral for a down payment — drawing sharp criticism from gold advocate Peter Schiff, who says the structure shifts risk to lenders and could unravel if prices fall.

Better, Coinbase Launch BTC Mortgage

On Mar. 26, the two companies announced a partnership to offer mortgages tied to Fannie Mae standards and backed by digital assets. Borrowers can use their Bitcoin or USDC (USDC) holdings as collateral without selling them or triggering a tax event, according to a press release.

Better, which calls itself the first AI-native mortgage platform, says the product targets Americans who hold crypto but lack the cash savings for a traditional down payment. The company added that borrowers will not face margin calls if Bitcoin drops — collateral is only liquidated if a payment becomes more than 60 days delinquent.

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Schiff Slams BTC Collateral Risk

Schiff pushed back almost immediately.

"Allowing homebuyers to pledge Bitcoin as a down payment on mortgage is a horrible idea, as it substantially increases the risk for lenders," he wrote on X. "If Bitcoin crashes, the down payment vanishes."

He also noted that lenders cannot touch the collateral until a borrower defaults, and later called the entire model a "scam to keep people from selling their Bitcoin to buy houses."

Van de Poppe, Schiff on BTC Outlook

The product arrives as Bitcoin itself trades under pressure. At the time of writing, BTC had slipped below $68,000, down roughly 3% over 24 hours and nearly 3% over the past week — though it remains up about 6% over 30 days.

It is still more than 45% below its Oct. 2025 all-time high.

Analyst Michaël van de Poppe read the dip differently, arguing that short-term holders were in capitulation — a pattern he associates with longer-term accumulation as weaker hands exit the market.

Schiff, for his part, has gone further in separate commentary, warning that Bitcoin could fall to $20,000 — an 84% drop from the Oct. 2025 peak of $126,000 — if it loses the $50,000 support level. He pointed to unrealized losses at Michael Saylor's Strategy as evidence the sell-off had further to run, and questioned Bitcoin's viability as a reserve asset given its volatility.

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