Fannie Mae has approved a cryptocurrency-backed home loan for the first time in the history of U.S. housing finance, The Block reported on March 26, citing the Wall Street Journal.
The move opens a way for homebuyers to obtain loans without converting digital assets into cash. The loan product was developed in cooperation with Better Home & Finance and Coinbase. It is designed to allow cryptocurrency to be used as collateral when taking out loans backed by Fannie Mae.
Fannie Mae's move is expected to mark an important turning point in how the financial sector views digital assets, The Block reported.
But details such as which cryptocurrencies will be accepted, how collateral will be assessed and risk management standards have not been disclosed.
Chi-gyu Hwang
delight@d-today.co.kr