Coinbase, Better Close First U.S. Fannie Mae Mortgage With Crypto

Coinbase and mortgage lender Better closed the first U.S. Fannie Mae‑backed mortgage that was partly financed with Bitcoin and USDC collateral, according to a June 4 announcement.

Under the program, a borrower receives a standard Fannie Mae mortgage for the property and a separate loan secured by Bitcoin or USDC to cover the down payment. The crypto collateral stays in custody for the life of the down‑payment loan and is returned when that loan is repaid. The product offers 15‑year and 30‑year fixed‑rate mortgage options.

Better originated and will service the mortgage using Coinbase infrastructure. Coinbase noted the program does not use Bitcoin to buy homes directly and said Bitcoin price swings do not directly change the mortgage terms under Better’s setup. The companies expect to roll the product out nationwide later this summer.

The structure includes specific collateral rules to address crypto volatility. Coinbase previously outlined that Bitcoin‑backed down‑payment loans require collateral equal to at least 250% of the loan amount. Collateral management, custody practices and margining will determine how lenders respond if crypto values change.

Questions remain about the regulatory treatment of crypto‑collateralized consumer credit, borrower protections if crypto values fall sharply, and how the model would perform under housing market stress. Whether demand will extend beyond early crypto‑native borrowers is unclear. The planned nationwide rollout is expected to produce data on consumer uptake and operational challenges.

Coinbase described the mortgages as ‘conforming’ products that use Fannie Mae backing and move the loans through existing U.S. housing finance channels.