Coinbase has funded the first Fannie Mae-insured mortgage in the U.S. using Bitcoin-backed collateral, bringing digital assets into a part of the housing finance market traditionally dominated by cash savings and bank deposits.
Summary
- Coinbase and Better Mortgage have completed the first Fannie Mae-insured U.S. mortgage backed by Bitcoin collateral.
- Borrowers can pledge Bitcoin and USDC without selling their holdings, with the assets held in a custodial account during the mortgage process.
- Better Mortgage expects up to $250 million in loan volume from its waitlist, while Coinbase plans a nationwide rollout later this summer.
According to Coinbase, the transaction was completed in partnership with Better Mortgage, which originated and serviced the loan while Coinbase provided the infrastructure used to secure the borrower’s Bitcoin holdings.
The mortgage was issued to Joe and Amy, a couple from Ann Arbor, Michigan, according to a Yahoo Finance report cited by the company.
Rather than selling their Bitcoin to fund the purchase, the borrowers placed the asset into a custody account that served as collateral for the down payment. Joe reportedly said that the arrangement allowed them to retain exposure to Bitcoin while moving forward with their home purchase.
The launch arrives shortly after Coinbase introduced a separate product focused on pre-IPO private companies. One day before announcing the mortgage, the exchange unveiled USDC-settled perpetual futures tied to private firms, beginning with a SpaceX-linked contract that offers eligible traders up to 5x leverage.
Bitcoin serves as mortgage collateral
Details shared by Coinbase show that approved borrowers can pledge Bitcoin and USDC without selling the assets. Once a mortgage application is approved through Better Mortgage, customers can transfer their crypto into a custodial wallet through their Coinbase account, where it serves as collateral for the loan.
Roy Zhang, Coinbase’s director of product, explained that the process is completed digitally.
“They click through on our product interface. They go through the application process on Better. Better approves them. They sign in to their Coinbase account, and with a single click, their bitcoin moves into a custodial wallet. And then they’re done.”
Better Mortgage has already opened a waitlist for the product ahead of a broader launch planned for this summer. The lender estimates a potential loan volume of approximately $250 million based on current waitlist data.
Vishal Garg, founder and chief executive officer of Better, described crypto-backed conventional mortgages as a natural extension of changing household investment habits.
Garg said more Americans are holding wealth in digital assets rather than traditional bank accounts, creating demand for financing products that recognize those holdings.
Mortgage meets Fannie Mae standards
A key element of the transaction is Fannie Mae’s involvement. As crypto.news reported earlier, the mortgage giant first announced in March this year that it would begin accepting cryptocurrency assets when evaluating mortgage down payments.
Garg said the completed mortgage satisfies the underwriting requirements associated with a Fannie Mae-conforming loan. According to him, this means the product operates within the existing mortgage framework rather than outside it.
He also stated that acceptance by a government-sponsored enterprise represents recognition of digital assets as eligible collateral alongside more traditional forms of wealth. Looking ahead, Garg said tokenized mortgages could eventually incorporate additional digital assets, including tokenized stocks.
For Coinbase, the mortgage rollout adds another crypto-based financial product to its expanding portfolio. Alongside the new housing finance initiative, the exchange said it plans to offer more pre-IPO perpetual futures contracts tied to sectors such as artificial intelligence, energy, technology, and space, following the launch of its SpaceX-linked product.
