Fannie Mae-Backed Bitcoin Mortgage Heads Nationwide

A first-of-its-kind bitcoin-backed mortgage has entered the U.S. housing market. Coinbase and Better funded the first Fannie Mae-backed mortgage using bitcoin collateral, creating a new option for homebuyers with wealth held in digital assets.

Key Takeaways:

• • Coinbase and Better completed a pioneering Fannie Mae-backed mortgage tied to bitcoin collateral.
• • Qualified borrowers can pledge bitcoin or USDC to support down payment financing.
• • The milestone arrives as federal housing agencies examine crypto in mortgage assessments.

Bitcoin Collateral Moves From Crypto Portfolios Into Home Lending

The first Fannie Mae-backed bitcoin mortgage has been funded, clearing the way for a nationwide rollout. On June 4, Coinbase (Nasdaq: COIN) and Better Home & Finance Holding Company (Nasdaq: BETR) announced the milestone, describing it as “the first Fannie Mae-backed mortgage backed by Bitcoin in the United States.”

Borrowers can pledge bitcoin or USD Coin (USDC) to help finance a down payment while keeping their crypto holdings intact.

The structure pairs a conventional mortgage with crypto-backed down payment financing. Better originates and services the Fannie Mae-backed mortgage. Coinbase handles custody, compliance, and operational support for the pledged digital assets. That means bitcoin supports the down payment loan, while the home loan remains inside the conforming mortgage system.

The announcement states:

“Initially supporting bitcoin and USDC, the product allows borrowers to pledge digital assets as collateral, enabling them to secure a mortgage without liquidating their holdings.”

The timing follows a broader policy shift around crypto and home finance. Federal Housing Finance Agency Director William J. Pulte has directed Fannie Mae and Freddie Mac to explore cryptocurrency in single-family mortgage risk assessments, provided the assets are verifiable and held on U.S.-regulated centralized exchanges.

Fannie Mae’s scale gives the milestone mainstream weight. The government-sponsored enterprise supports trillions of dollars in U.S. mortgage credit and plays a central role in the country’s housing finance system.

Bitcoin and USDC Face Their First Real Mortgage Test

For crypto holders, the appeal centers on control. Selling bitcoin to raise cash can cut off future upside and create possible tax costs. Better said 41% of its pre-approved customers qualify on income and credit but lack cash for a traditional down payment. It also said first-time homebuyers have reached a median age of 40, up from 32 a decade earlier.

The first completed loan went to Joe and Amy, a married couple in their early 30s in Ann Arbor, Michigan. Joe is a software engineer, and Amy is a graduate student. They had built savings in digital assets but lacked enough cash for a traditional down payment. By pledging bitcoin, they bought their first home while preserving their long-term crypto position.

Better’s scale makes the rollout more than a limited mortgage experiment. The company says it is the first fintech to fund more than $110 billion in loan volume. Its platform serves customers in all 50 U.S. states and the United Kingdom. That reach gives the bitcoin-backed mortgage a broader distribution base as it moves toward national availability.

Mark Troianovski, head of consumer and platform partnerships at Coinbase, said:

“Funding the first token-backed conforming mortgage is one of the most tangible demonstrations of that vision that we have seen.”

Coinbase’s role is practical and central to the product. Better chose Coinbase to manage the digital asset side of the structure, including secure custody, compliance controls, and operating support. The crypto firm also serves millions of retail users, more than 150 government agencies, and over 300 institutional clients globally. That infrastructure helps connect crypto collateral with a conforming mortgage and a separate down payment loan.