Key Takeaways
- Coinbase (COIN) partnered with Better Home & Finance (BETR) to introduce a crypto-collateralized mortgage program endorsed by Fannie Mae.
- Homebuyers can use bitcoin or USDC as down payment collateral while keeping ownership of their digital assets.
- The program eliminates capital gains tax liability and protects borrowers from margin calls during market downturns.
- Mortgage rates will carry a 0.5 to 1.5 percentage point premium above conventional 30-year loan rates.
- Fannie Mae’s participation represents an unprecedented milestone for cryptocurrency integration in traditional finance.
Coinbase (COIN) has partnered with Better Home & Finance (BETR) to introduce a groundbreaking mortgage solution that enables prospective homeowners to leverage bitcoin or USDC as down payment collateral, with endorsement from Fannie Mae.
Fannie Mae’s acceptance of this mortgage structure represents a historic first. As a government-sponsored enterprise supervised by the Federal Housing Finance Agency, Fannie Mae holds significant influence over U.S. housing finance. This endorsement could catalyze broader industry adoption.
The mortgage product targets mainstream American homebuyers rather than exclusively serving wealthy individuals. Coinbase characterized the offering as fundamentally American in nature.
According to Better CEO Vishal Garg, approximately 41% of American families cannot complete home purchases because they lack sufficient down payment funds. Many of these aspiring homeowners maintain wealth in alternative assets, including cryptocurrency.
The mechanics work as follows: buyers secure a conventional 15- or 30-year Fannie Mae-guaranteed mortgage through Better. Rather than providing cash upfront, they back a secondary loan with bitcoin or USDC stored on Coinbase.
The cryptocurrency moves into a custody wallet managed by Better, though borrowers maintain full ownership privileges. USDC holders continue earning staking yields on their pledged collateral.
Borrowers face interest rates elevated by 0.5 to 1.5 percentage points compared to standard 30-year mortgages, with the exact premium determined by individual financial profiles. Prospective buyers must evaluate whether this additional expense aligns with their circumstances.
Protection Against Volatility and Forced Sales
The program offers substantial safeguards against cryptocurrency price fluctuations. Bitcoin price declines trigger zero changes to mortgage conditions and require no additional collateral deposits.
Liquidation occurs solely when borrowers miss payments for 60 consecutive days — identical to traditional mortgage default provisions. Cryptocurrency market volatility alone cannot result in collateral forfeiture.
Mark Troianovski, Coinbase’s head of consumer and platform business development, drew parallels to private banking services for affluent clients. “They don’t sell assets to buy stuff; they actually take loans against assets,” he explained.
Fannie Mae Approval Distinguishes This From Prior Offerings
Crypto-collateralized mortgages have existed previously. Miami fintech company Milo has provided such loans since 2022, serving more than 100 clients. Earlier products primarily targeted specialized markets — frequently international buyers or luxury property transactions.
Fannie Mae’s participation fundamentally transforms the landscape. The enterprise purchases, securitizes, and guarantees mortgages on a massive scale, making its underwriting criteria industry-standard benchmarks.
Better pioneered this collateral approach in February 2023 by permitting Amazon employees to pledge company stock for down payments. The cryptocurrency variant extends this framework while accessing [[LINK_START_2]]Coinbase’s[[LINK_END_2]] substantial user base of digital asset holders.
Gallup data shows approximately 14% of American adults held cryptocurrency in 2025. A Redfin survey from 2025 revealed nearly 13% of millennial and Gen Z buyers liquidated crypto holdings to fund down payments — creating taxable events this new product allows them to circumvent.
The Trump administration instructed Fannie and Freddie Mac in June to develop policies treating cryptocurrency as eligible mortgage application assets, reinforcing governmental support for the digital asset sector.
