Coinbase Global has teamed with Better Home & Finance to introduce a mortgage option that allows eligible buyers to use crypto held at Coinbase to fund down payments on conventional mortgages that meet Fannie Mae standards.
Under the arrangement, borrowers pledge digital assets—such as Bitcoin or USDC—kept in Coinbase accounts as collateral for a separate loan used solely to cover the down payment. The main mortgage itself remains a standard, Fannie Mae–eligible loan originated and serviced by Better. Coinbase says the structure lets buyers preserve their crypto exposure instead of selling holdings to raise cash for a home purchase.
Coinbase positions the product as a step beyond treating crypto only as an asset in underwriting; here, digital assets play a direct role in financing the home purchase. The move follows regulatory shifts that have increasingly recognized cryptocurrency in mortgage frameworks: in June, the Federal Housing Finance Agency instructed Fannie Mae and Freddie Mac to develop proposals for treating cryptocurrency as an asset in mortgage risk assessments without requiring conversion to U.S. dollars.
Coinbase outlined several protections and constraints. Collateralized assets are locked and cannot be traded while used as collateral. According to Coinbase, normal market volatility will not automatically trigger margin calls as long as borrowers stay current on payments, and once the mortgage is active its terms will not change because of the pledged assets. At the same time, the company acknowledges the trade-off: using crypto collateral replaces upfront cash with additional secured debt and creates exposure to asset-price swings that can influence a borrower’s overall financial position.
The announcement builds on a series of incremental steps by mortgage firms to incorporate crypto. In January, loan servicer Newrez said it would accept Bitcoin, Ether, crypto ETFs and stablecoins as qualifying assets in underwriting without forcing liquidation. In February, mortgage lender Rate launched a program that allows verified crypto holdings to count toward reserves and, in some instances, income; however, Rate still requires converting crypto into cash to cover down payments and closing costs.
Cointelegraph reached out to Fannie Mae for comment but had not received a reply before publication.
Tim Ryan, a former U.S. representative who sits on Coinbase’s advisory council and focuses on middle-class housing affordability, said the product demonstrates a practical application of crypto for prospective homeowners—helping early investors convert gains into funds for one of the biggest barriers to buying a house: the down payment. “Digital assets have a place for working-class people… all the way down to getting a home,” Ryan said.
Affordability remains a significant hurdle: despite cooling activity driven by low inventory and higher interest rates, the median U.S. home price was above $405,000 in the fourth quarter, making a typical 20% down payment more than $80,000. For some crypto holders, pledging assets instead of selling them could make that barrier easier to overcome.
While the Coinbase–Better product could broaden how cryptocurrency is used across the mortgage process, it also means borrowers who want to keep crypto exposure take on extra secured debt and the risks that come with volatile assets. Additional reporting for this story was provided by Sam Bourgi and Turner Wright.