Coinbase and mortgage lender Better have issued the first U.S. mortgage backed by Bitcoin that Fannie Mae has agreed to accept. The borrowers were a couple from Michigan.
Coinbase and Better first announced plans to launch the product in March 2026, and the financing officially closed on June 4. The companies say they plan to roll out the offering nationwide later this summer.
How the New Mechanism Works
Borrowers receive two loans rather than one. The first is a standard home mortgage backed by Fannie Mae, one of the largest sources of mortgage financing in the United States. The second covers the down payment and is secured by Bitcoin or the USDC stablecoin used as collateral. Both loans carry the same interest rate and term and are combined into a single monthly payment made to Better.
The pledged assets are held in Coinbase Prime’s custodial service for the life of the loan and are returned to the borrower once the debt is fully repaid. There are no margin calls built into the structure: a drop in Bitcoin’s price does not require borrowers to post additional collateral and does not automatically trigger liquidation. The collateral is only at risk if payments become at least 60 days overdue, consistent with standard foreclosure timelines in traditional mortgage lending.
What Led to the Emergence of Crypto-Backed Mortgages
By pledging Bitcoin instead of selling it, cryptocurrency holders can avoid capital gains taxes while maintaining exposure to potential future gains in the asset’s value.
The ability to use cryptocurrency as collateral for a conventional mortgage became possible after a policy shift by the Federal Housing Finance Agency. Its director, Bill Pulte, instructed Fannie Mae to consider cryptocurrency held on centralized exchanges when evaluating risk for residential mortgage loans.