The first Bitcoin-backed mortgage has entered the U.S. housing market. Coinbase and Better have jointly launched the first Bitcoin-backed mortgage secured by Fannie Mae, offering new options for buyers holding digital assets.
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Key Takeaways
- Key points:
- Coinbase and Better jointly launched a groundbreaking Fannie Mae mortgage secured by Bitcoin.
- Eligible borrowers can stake Bitcoin or USDC to support down payment financing.
- This milestone development comes as the Federal Housing Agency examines cryptocurrencies in mortgage evaluations.
Bitcoin collateral assets are shifting from cryptocurrency portfolios to home loans
The first Bitcoin mortgage backed by Fannie Mae has been approved, paving the way for nationwide rollout. On June 4, Coinbase (NASDAQ: COIN) and Better Home & Finance Holding Company (NASDAQ: BETR) jointly announced this milestone, calling it "the first mortgage in the United States guaranteed by Fannie Mae and backed by Bitcoin."
Borrowers can stake Bitcoin or USD Coin (USDC) to raise a down payment while maintaining their cryptocurrency holdings.
This structure combines traditional mortgages with cryptocurrency-backed down payment financing. Better is responsible for initiating and managing this Fannie Mae-backed mortgage, while Coinbase is responsible for custody, compliance, and operational support for the staked digital assets. This means Bitcoin backs down payment loans, while home loans remain within a standard mortgage system. The announcement states:
"The product initially supports Bitcoin and USDC, allowing borrowers to use digital assets as collateral to obtain collateralized loans without liquidating their holdings."