Coinbase, Better expand bitcoin-backed mortgage product with U.S. rollout planned

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Coinbase, Better bitcoin mortgage

Highlights

Coinbase and Better closed the first Fannie Mae-backed mortgage using bitcoin as down payment collateral, enabling borrowers to avoid selling crypto assets.
A waitlist representing about $250 million in potential loan volume shows strong borrower demand, with over half seeking to purchase a home within six months.
Borrowers must pledge bitcoin at a 2.5-to-1 collateral ratio, with California, New York, and Florida the top states of interest among prospective applicants.

Mortgage structure and first borrower case

The Block reports that Coinbase and Better Home & Finance Holding Company have closed the first Fannie Mae-backed mortgage that uses bitcoin as collateral for a down payment. The product is built to let borrowers tap crypto holdings without selling those assets, and it currently supports bitcoin and the USDC stablecoin, with additional digital assets planned over time.

The first loan went to Joe and Amy, a married couple in their early 30s from Ann Arbor, Michigan. The companies say the pair had accumulated savings in digital assets but did not hold enough cash for a traditional down payment, so they pledged bitcoin as collateral instead of selling it and taking a potential tax hit while giving up future upside.

The structure combines two loans that close at the same time. One is a standard Fannie Mae mortgage, while the second is a separate crypto-backed loan that funds the down payment; Better packages them so the borrower sees a single monthly payment with the same interest rate and amortization schedule across both loans.

For a $500,000 home purchase, a borrower could take a $400,000 Fannie Mae mortgage and a $100,000 crypto-backed down payment loan. A Coinbase spokesperson says that would typically require about $250,000 in bitcoin collateral because the pledge ratio for bitcoin-backed loans is about 2.5-to-1, while USDC-backed loans use a 1.25-to-1 ratio.

Borrower demand and housing market implications

Maximum loan sizes follow standard Fannie Mae conforming limits, which vary by region, and the product is offered with 15-year and 30-year fixed-rate terms. The pledged crypto remains in custody for the life of the loan through Better's custodial account on Coinbase's platform.

Mark Troianovski, head of consumer & platform partnerships at Coinbase, says the first token-backed conforming mortgage shows how bitcoin can be used beyond passive holding. Better says the model could open homeownership to borrowers who qualify on income and credit metrics but fall short on liquid cash for a conventional down payment.

Demand appears strong ahead of the wider launch. The spokesperson says the waitlist represents about $250 million in potential loan volume, with more than half of interested borrowers aiming to buy a home within six months, and adds that 76% of waitlist borrowers are already Coinbase users.

California, New York and Florida rank as the top three states of interest among prospective borrowers, according to the spokesperson. Better, which says it has funded more than $110 billion in loans to date, adds that 41% of its pre-approved customers qualify on income and credit but do not have enough cash for a traditional down payment.

Our earlier article on a Brooklyn townhouse listed with bitcoin or vested Anthropic shares as payment showed how nontraditional assets are starting to play a direct role in residential real estate deals. We noted that the structure reflects shifting liquidity dynamics, as holders of digital assets and private AI equity look for ways to convert paper wealth into property without relying solely on cash.

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