- Coinbase and Better funded the first bitcoin-backed mortgage in the U.S.
- Borrowers can use bitcoin or USDC for down payments without selling their crypto.
- The structure combines a traditional mortgage with a crypto-backed loan.
- Nationwide availability is planned for later this summer.
- Demand has already exceeded $250 million in potential loan volume.
Crypto enters the mortgage market
Coinbase and Better Home & Finance have completed the first Fannie Mae-backed mortgage that uses bitcoin as collateral, marking a significant milestone for crypto-backed financial products.
The new offering allows homebuyers to leverage their digital asset holdings for a down payment while keeping ownership of their crypto investments.
The first borrowers, a married couple from Michigan, used bitcoin as collateral rather than selling their holdings and potentially triggering taxes or missing future price appreciation.
How the mortgage structure works
The product consists of two loans that close simultaneously.
The first is a standard Fannie Mae conforming mortgage, while the second is a crypto-backed loan used to fund the down payment. Borrowers pledge bitcoin or USDC as collateral to secure the second loan.
For example, a buyer purchasing a $500,000 home could obtain a $400,000 traditional mortgage and use a separate $100,000 crypto-backed loan for the remaining down payment.
Bitcoin collateral currently requires approximately a 2.5-to-1 collateralization ratio, while USDC requires roughly 1.25-to-1.
Strong early demand
According to Coinbase, the waitlist already represents approximately $250 million in potential loan volume.
More than half of interested borrowers expect to purchase a home within six months, while roughly 76% are already Coinbase customers.
California, New York, and Florida currently lead demand among prospective users.
Expanding real-world crypto utility
The initiative reflects a broader trend of integrating digital assets into traditional financial products.
Rather than requiring users to liquidate crypto holdings, the model allows investors to unlock liquidity while maintaining exposure to potential future appreciation.
If successful, bitcoin-backed mortgages could become one of the most practical examples of crypto being used within mainstream consumer finance.
