Coinbase and the home lender Better are rolling out crypto-based mortgages—and have already completed the first one.
According to Yahoo Finance, the mortgages are backed by Fannie Mae, the government-sponsored enterprise that supports liquidity in the U.S. housing finance system. The structure follows Fannie Mae guidance allowing bitcoin and U.S. dollar-pegged stablecoins to be used as collateral for certain home loans. Coinbase says there is a waiting list of interested applicants.
Pledging Crypto Without Giving It Up
Although the first mortgage has been issued, Better and Coinbase said the product will officially launch on June 18. The program was announced in March and combines a traditional Fannie Mae-eligible mortgage with a separate privately financed loan secured by digital assets. The first mortgage is underwritten and priced like a standard conforming loan, while the crypto-backed loan is used to fund the down payment.
Previously, using bitcoin as down payment collateral or for full mortgage financing has been limited to niche offerings from a small number of specialized lenders. The new structure allows borrowers to pledge crypto as collateral rather than liquidate it, allowing them to retain ownership of their holdings while accessing home financing.
“This is a meaningful step toward turning crypto wealth into usable collateral,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “It will probably be most popular with a younger, crypto-native consumer who doesn’t want to liquidate their holdings. Coinbase and Better being serious about this while conforming to conventional Fannie Mae requirements points to digital assets becoming increasingly used and treated as a balance sheet item rather than a speculative asset.”
Collateral Requirements
Although the loans are separate, Better combines them into a single monthly payments with one interest rate and term. When bitcoin is used as collateral, its value must be at least 250% of the down payment loan amount. For stablecoins, the requirement is 125%.
Better describes the structure as aligned with how some borrowers already hold wealth in digital assets, while integrating it into conventional mortgage underwriting.
“Americans used to keep all their money in banks,” Vishal Garg, Founder and CEO of Better, told Yahoo Finance. “Now, American households have $35 trillion in stocks, bonds, and digital assets, and only $5 trillion deposited in their checking or savings accounts in a bank. Young people are investing in digital assets. They’re not keeping their money in cash.”
