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Better and Coinbase Fund First Fannie Mae‑Backed Mortgage Using Bitcoin Collateral

Coinbase custody secures a second lien to fund a down payment from pledged crypto without a taxable sale, creating a new path for digital assets to play a role in conforming mortgages.

Overview

  • Better and Coinbase said they closed and funded the inaugural loan on June 4, 2026 for a Michigan couple who pledged Bitcoin and USDC instead of selling holdings to cover a down payment.
  • The product uses two simultaneous loans: a standard Fannie Mae‑conforming mortgage for the home and a privately financed second loan secured by the borrower’s pledged crypto that covers the down payment.
  • Approved borrowers move assets into Coinbase Prime custody and must overcollateralize the down‑payment loan at about 250% for Bitcoin and 125% for USDC, with pledged crypto returned on full repayment.
  • Price swings do not trigger routine margin calls and pledged crypto is not sold for market moves; Better says liquidation can occur only after sustained payment delinquency, generally about 60 days.
  • The rollout is in early stage with a waitlist and a planned nationwide offering this summer that Better estimates could represent roughly $250 million in initial demand, and the FHFA’s June 2025 guidance enabled GSE recognition of centrally‑custodied digital assets.