Coinbase and Better Mortgage have completed the first U.S. mortgage that meets Fannie Mae standards while using Bitcoin-backed collateral. The structure lets borrowers bring digital assets into the home financing process without liquidating their crypto, in a market that has long relied on cash savings and bank deposits.
According to Coinbase, Better Mortgage originated and services the loan, while Coinbase supplied the infrastructure used to secure the borrower’s Bitcoin in custody. The company, citing a Yahoo Finance report, said the mortgage was issued to Joe and Amy, a couple in Ann Arbor, Michigan. Instead of selling Bitcoin to fund the purchase, they moved the asset into a custodial account that served as collateral for the down payment. Joe said the setup allowed them to keep their Bitcoin exposure while moving ahead with the home purchase.
Borrowers can pledge Bitcoin and USDC
Coinbase said approved applicants can pledge Bitcoin and USDC without selling either asset. After Better Mortgage approves the application, customers can transfer their crypto through a Coinbase account into a custodial wallet, where it is held as collateral for the mortgage.
Roy Zhang, Coinbase’s director of product, said the process is handled digitally. In his description, borrowers move from the product interface to Better’s application flow, receive approval, sign in to Coinbase, and transfer their Bitcoin into custody with a single click.
Better Mortgage has already opened a waitlist ahead of a broader launch planned for later this summer. Based on current waitlist data, the lender estimates potential loan volume of about $250 million.
Product runs within the existing mortgage framework
Fannie Mae’s role is central to the transaction. The report noted that the mortgage company said in March this year that it would begin accepting cryptocurrency assets when evaluating down payments for mortgages. Better founder and chief executive officer Vishal Garg said the completed loan satisfies the underwriting requirements tied to a Fannie Mae-conforming mortgage, placing the product inside the current mortgage system rather than outside it.
Garg also said more Americans now hold wealth in digital assets instead of traditional bank accounts, creating demand for financing products that take those holdings into account. He added that tokenized mortgages could eventually include other digital assets, including tokenized stocks.
Coinbase adds housing finance to a wider product push
The mortgage launch came one day after Coinbase introduced another crypto-based product focused on pre-IPO private companies. The exchange unveiled USDC-settled perpetual futures tied to private firms, starting with a SpaceX-linked contract that offers eligible traders up to 5x leverage. Coinbase said it plans to add more pre-IPO perpetual contracts connected to sectors including artificial intelligence, energy, technology, and space.