Coinbase and Fannie Mae-backed Better launch crypto-backed mortgages for US customers

Coinbase has partnered with Nasdaq-listed mortgage and home equity finance platform Better (BETR) to introduce what it describes as "the first crypto-backed, conforming mortgages" in the United States. The initiative allows homebuyers to use Bitcoin or USDC holdings for down payments without liquidating their assets, according to a Thursday press release.

The initiative integrates Coinbase's custody and collateral infrastructure into Better's Fannie Mae-approved lending platform, enabling borrowers to retain exposure to their crypto investments while accessing traditional home financing.

"Better was founded to make homeownership more accessible for all Americans, and this partnership with Coinbase introduces a new pathway to realizing the American Dream for the 52 million Americans who own digital assets," said Vishal Garg, the CEO and founder of Better.

Better to incorporate dual-loan structure for crypto-backed mortgages

At the core of the offering is a dual-loan structure that streamlines the borrowing experience. Better will originate and service a standard 15- or 30-year fixed-rate mortgage backed by Fannie Mae, while simultaneously issuing a second loan secured entirely by crypto assets held in the borrower's Coinbase account. The second loan covers the cash portion of the down payment.

Both loans carry identical interest rates, allowing borrowers to make a single combined monthly payment. The pledged crypto collateral is held in a Coinbase Prime custody account for the duration of the loan and is released only after the down-payment loan is fully repaid.

To mitigate volatility risks, the program requires overcollateralization, set at 250% for Bitcoin and 125% for USDC.

Coinbase's Head of Consumer and Business Products, Max Branzburg, said the offering addresses a long-standing gap for crypto investors seeking homeownership.

"Token-backed mortgages are a major first step to unlocking homeownership for the younger generations that have struggled with barriers to saving for a traditional down payment," said Branzburg.

As an added incentive, Coinbase One members approved through Better may receive up to $10,000 in closing-cost credits, applied as lender rebates.

The launch comes amid a shifting regulatory landscape for digital assets in US housing finance. In June 2025, the Federal Housing Finance Agency (FHFA), under Director William Pulte, directed Fannie Mae and Freddie Mac to develop proposals that would recognize cryptocurrencies held on regulated US exchanges as eligible reserve assets in mortgage risk assessments.