Coinbase expands crypto-backed mortgage payments for U.S. homebuyers

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Ashutosh Sureka

3 hours ago

Coinbase expands crypto-backed mortgage payments for U.S. homebuyers — Crypto meets mortgages

Digital assets are moving deeper into mainstream housing finance as lenders test ways to use crypto wealth for home purchases. Coinbase and Better Home & Finance say qualified borrowers will be able to pledge Bitcoin or USDC this summer to help fund down payments for Fannie Mae-backed mortgages.

Highlights

Coinbase and Better Home & Finance to launch crypto-collateralized mortgage program using Bitcoin or USDC for down payments by summer 2026.
Federal Housing Finance Agency in June 2025 directed Fannie Mae and Freddie Mac to factor crypto assets into mortgage underwriting without conversion to fiat currency.
Five U.S. senators in July 2025 warned FHFA that including unconverted cryptocurrency in underwriting criteria could elevate housing market and financial stability risks.

Summer rollout for token-backed down payments

As reported by Cointelegraph and Better Home & Finance in a Thursday notice, the mortgage structure is set to launch by summer 2026 and initially lets borrowers use Bitcoin or USDC as collateral for loans supporting home down payments. The companies first announced the initiative in March, marking a broader shift toward allowing digital assets to be used in housing finance.

Better founder and chief executive Vishal Garg says the program is aimed at borrowers who meet standard qualification measures but struggle to access cash for a down payment because much of their wealth is held in forms the traditional system does not readily recognize. In a March post on X, Garg says tokenized financial assets are likely to become a more common path for buying homes.

Regulatory support and market risks

The initiative follows a more crypto-friendly policy environment in the U.S. under the Trump administration. In June 2025, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to consider crypto as an asset in mortgage risk assessments without requiring conversion into fiat currency, and other lenders have since moved in a similar direction, including Newrez in February.

At the same time, the use of volatile digital assets in mortgage underwriting continues to draw scrutiny. Five U.S. senators said in a July 2025 letter to FHFA Director Bill Pulte that expanding underwriting criteria to include unconverted cryptocurrency assets could create risks for housing market and financial system stability, while Republican lawmakers including Cynthia Lummis have pushed to write the FHFA approach into law through the 21st Century Mortgage Act.

Our earlier coverage of the Trump administration’s FY2027 budget message outlined how Treasury is framing tax cuts, trade actions, and deregulation as drivers of a continued U.S. economic expansion. The report highlighted rising average tax refunds, a projected narrowing of the goods trade deficit, and an aggressive 2025 deregulation pace—context that helps explain the broader policy backdrop behind shifts in U.S. financial markets and lending practices.

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