Key Takeaways
- Coinbase (COIN) has partnered with Better Home & Finance (BETR) to introduce a cryptocurrency-collateralized mortgage solution endorsed by Fannie Mae.
- Homebuyers can use bitcoin or USDC holdings as down payment collateral without liquidating their digital assets.
- The program eliminates capital gains tax triggers and doesn’t require margin calls during crypto market downturns.
- Rates on these mortgages carry a premium of 0.5 to 1.5 percentage points above conventional 30-year loans.
- Fannie Mae’s participation represents an unprecedented move toward legitimizing crypto in traditional mortgage lending.
Coinbase (COIN) has joined forces with Better Home & Finance (BETR) to introduce a groundbreaking mortgage solution that enables prospective homeowners to leverage their bitcoin or USDC holdings as down payment collateral, with institutional support from Fannie Mae.
This represents an unprecedented milestone as Fannie Mae embraces crypto-backed lending for the first time. The government-sponsored enterprise, regulated by the Federal Housing Finance Agency, holds significant influence over American housing finance, suggesting this partnership could pave the way for broader industry acceptance.
The program targets mainstream homebuyers rather than exclusively serving affluent clients. Coinbase characterized the offering as quintessentially American in its accessibility.
According to Better CEO Vishal Garg, approximately 41% of American households cannot purchase homes simply because they lack sufficient cash for down payments. Many of these would-be homeowners possess valuable assets in alternative forms, including cryptocurrency.
The mechanics are straightforward: purchasers obtain a conventional 15- or 30-year Fannie Mae-guaranteed mortgage through Better. Rather than providing cash upfront, borrowers secure a secondary loan collateralized by bitcoin or USDC stored with Coinbase.
The digital assets move into a custodial wallet managed by Better, though borrowers maintain full ownership privileges. Notably, USDC holders continue receiving staking yields on their pledged collateral.
Borrowers should expect interest rates approximately 0.5 to 1.5 percentage points above standard 30-year mortgage rates, with exact pricing determined by individual borrower qualifications. This premium represents an important cost consideration for potential applicants.
Market Volatility Protection Built In
A standout feature of this mortgage product is its immunity to cryptocurrency price fluctuations. When bitcoin experiences value depreciation, loan conditions remain unchanged and additional collateral isn’t demanded.
Liquidation occurs exclusively after 60 days of payment default — identical to traditional mortgage standards. Price volatility in crypto markets cannot independently trigger collateral forfeiture.
Mark Troianovski, Coinbase’s head of consumer and platform business development, drew parallels to wealth management strategies for affluent individuals. “They don’t sell assets to buy stuff; they actually take loans against assets,” he explained.
A New Chapter for Crypto Lending in Housing
While crypto-collateralized mortgages aren’t entirely novel — Miami-based fintech Milo has provided similar products since 2022 with more than 100 active clients — previous offerings predominantly served specialized markets, including international buyers and luxury property transactions.
Fannie Mae’s endorsement fundamentally transforms the landscape. As the entity responsible for purchasing, securitizing, and guaranteeing mortgages nationwide, Fannie Mae’s underwriting criteria establish industry-wide benchmarks that lenders routinely follow.
Better had already explored asset-backed mortgages in February 2023, permitting Amazon employees to pledge company stock for down payment collateral. The cryptocurrency adaptation employs comparable frameworks while expanding eligibility to [[LINK_START_2]]Coinbase[[LINK_END_2]]’s substantial user base of digital asset holders.
Gallup data indicates that 14% of American adults held cryptocurrency in 2025. Separately, a 2025 Redfin analysis revealed nearly 13% of millennial and Gen Z homebuyers liquidated crypto holdings to finance down payments — creating taxable events that this new product specifically circumvents.
The Trump administration previously instructed Fannie Mae and Freddie Mac in June to incorporate cryptocurrency into mortgage application asset evaluations, signaling governmental support for the digital asset sector’s integration into traditional finance.
