Better Home & Finance and Coinbase are preparing a new mortgage product tied to Fannie Mae-backed loans, according to a Wall Street Journal report published on March 26. The reported structure would allow some homebuyers to pledge crypto holdings during the mortgage process instead of liquidating those assets before closing.
The plan centers on combining traditional housing finance with crypto-backed borrowing. Under the reported arrangement, Better would serve as the lender, while Coinbase would handle the crypto side of the product. Buyers taking out a Fannie Mae-backed mortgage could use digital assets as pledged collateral within a parallel loan structure.
Two-loan structure sits at the center of the plan
The report said the product would use two separate loans. One would be a standard mortgage backed by Fannie Mae, and the other would be secured by the borrower’s crypto assets. That setup would let borrowers avoid selling digital assets to come up with funds before the home purchase is completed.
Only limited product details were available at publication. The report said Bitcoin and USDC are expected to be included, but full eligibility rules had not been disclosed. It also said the pledged crypto could not be traded while it is being used to secure the loan. The assets remain in place, but they would not stay fully liquid.
Current Fannie Mae rules require conversion into dollars
Under Fannie Mae’s current selling guide, virtual currency can be counted only after it has been converted into U.S. dollars and deposited with a regulated financial institution. If the reported product moves ahead in the form described, it would depart from that existing framework rather than simply fit inside it.
The report also said rates on the crypto-backed portion could come in above standard mortgage pricing. Borrowers may be able to keep their crypto exposure, but that flexibility may carry a higher financing cost.
Move follows a 2025 FHFA directive
The reported product comes after a 2025 FHFA order directing Fannie Mae and Freddie Mac to consider crypto holdings in mortgage loan assessments. This new structure would go beyond that step by linking crypto directly to mortgage collateral, instead of treating digital assets only as part of the borrower review process.
As of publication, the full qualification criteria, operational details, and launch timeline had not been released.