Coinbase is teaming up with Fannie Mae-approved mortgage firm Better Home & Finance to let crypto holders use their digital assets as down payment collateral when buying a home.
The product targets everyday homebuyers, not just the wealthy — a notable shift from earlier crypto-backed mortgage products that focused on high-net-worth clients.
How it works
Borrowers pledge bitcoin or USDC as collateral to cover their down payment, keeping their assets intact and avoiding a taxable event that would normally come from selling.
The mortgage is structured as a conforming loan backed by Fannie Mae, carrying the same protections and standards as a traditional mortgage.
Rates will run between half a percentage point and 1.5 percentage points above a standard 30-year mortgage, depending on the borrower’s profile.
Crucially, the loans are free of margin calls. If bitcoin drops in value, the mortgage terms stay unchanged and no additional collateral is required — market movements alone never trigger liquidation.
Collateral is only at risk if a borrower falls 60 days behind on payments, in line with conventional mortgage rules.
The case for the product
Better founder Vishal Garg pointed out that roughly 41% of American families fail to buy a home simply because they lack the cash for a down payment, even when they hold savings elsewhere.
Coinbase’s head of consumer and platform business development, Mark Troianovski, framed the offering as democratizing access to a strategy long reserved for the ultra-wealthy.
Troianovski said:
“People who are sitting on Bitcoin or USDC can put a roof over their head without needing to sell it, without needing to incur capital gains. We are giving people access to housing in a way that is very similar to how private bankers serve some of the wealthiest customers.”
Prior moves in the space
Better has experimented with asset-backed lending before, allowing Amazon employees in February 2023 to pledge company stock as collateral for a down payment loan.
Garg estimated that had Better accepted crypto collateral in prior years, the firm could have funded roughly $40 billion more in consumer mortgage demand.
Coinbase called the product “as American as apple pie,” signaling the company sees crypto-backed home loans as a mainstream financial tool rather than a niche offering.
