Coinbase just made Bitcoin-backed loans better for U.S. customers

@Coinbase and @betrmortgage have taken a meaningful step in bringing crypto wealth into mainstream real estate finance. The two companies have funded the first Fannie Mae-backed mortgage collateralized by Bitcoin in the United States, with a nationwide rollout now underway for qualified borrowers.

How the Product Works

Borrowers can pledge $BTC as collateral to fund a cash down payment, securing a standard conforming mortgage without liquidating their digital holdings or triggering a capital gains tax event. Bitcoin collateral must equal at least 250% of the loan amount, meaning a borrower seeking a $100,000 down payment must pledge at least $250,000 in Bitcoin. The pledged crypto sits in a custodial account on Coinbase's platform for the duration of the loan, and the product is available in 15 and 30-year fixed-rate terms.

A key feature of the structure is its protection against margin calls. If the value of the pledged Bitcoin falls after the loan closes, the borrower does not face a demand to top up their collateral. Mortgage terms remain fixed regardless of crypto price movements, which sets this product apart from typical crypto-lending arrangements.

Because the loans are originated and serviced by Better and carry Fannie Mae backing, they qualify as standard conforming mortgages. This structure enables significantly lower interest rates than those typically associated with non-QM token-backed loans.

The Bigger Picture

The partnership speaks to a broader shift in how crypto holders think about their wealth. For many younger Americans, digital assets represent a substantial portion of their financial portfolio, yet traditional mortgage underwriting has historically ignored these holdings. Coinbase's 2025 State of Crypto Report found that 45% of younger investors own crypto, compared to 18% of older investors.

The product also extends a perk to Coinbase's subscription tier: Coinbase One members who are approved for a loan by Better are eligible for up to $10,000 in closing cost credits, applied as a lender credit by Better.

As one of Better's first token-backed mortgage customers put it: "We closed on our home and my Bitcoin stayed intact. We didn't have to liquidate, didn't have to time the market."

Sources:
Better and Coinbase, Business Wire: First Token-Backed Mortgage Funded by Fannie Mae (June 2026)
Coinbase Blog: Coinbase Powers the First Crypto-Backed Conforming Mortgages by Better
National Mortgage Professional: Better and Coinbase Launch Token-Backed Mortgages for Conforming Loans