Coinbase (NASDAQ:COIN) moved higher today by almost 5%, propelled by two distinct catalysts.
First, Coinbase revealed it is partnering with Better Mortgage to issue conforming products backed by digital assets.
Coinbase actually revealed its intent for the mortgage sector and its partnership with Better this past March, saying crypto-backed mortgages are the “first step in integrating crypto into the core plumbing of the U.S. housing finance system.”
For a crypto-backed loan, instead of needing cash for a down payment, borrowers can pledge their digital asset holdings as collateral to cover it.
Better will originate these crypto-backed mortgages, and they will benefit from Fannie Mae’s backing.
Second, Bitcoin caught an updraft pushing above $80,000.
Coinbase is a high-beta stock, and news like this tends to cause a pretty significant swing in the share price. Coinbase has become a pretty good proxy for Bitcoin’s price, and with more people calling for BTC to move even higher, a further push in crypto would be good for Coinbase.
Of course, next month’s vote on the CLARITY Act is still in a holding pattern for now, as the Senate is not in session.
Coinbase is now trading over $190 a share, a price point it hasn’t hit since June 1. Still, the “everything exchange” is far from its 52-week high of over $402.