Coinbase Powers the First Crypto-Backed, Conforming Mortgages by Better

Millions of Americans now have a new path toward homeownership. With Coinbase powering Better’s new crypto-backed mortgages, prospective homeowners will soon be able to use the Bitcoin or USDC in their Coinbase accounts to fund their cash down payments.¹ These crypto-backed mortgages will be originated and serviced by Better, and will benefit from the same backing of Fannie Mae – one of the leading sources of mortgage financing in the United States – as other conforming mortgages.

For the tens of millions of Americans who hold digital assets, crypto-backed mortgages create an option to secure housing in a housing market where access has become increasingly constrained.

Homeownership is one of the most powerful engines of generational wealth, but access to it is getting harder. Traditional homeownership favors older generations who benefit from decades of compounding equity growth that can outpace the growing divide between housing costs and income. Meanwhile, high interest rates, record home prices, and limited inventory have pushed the median age of a first-time homebuyer to 40.² High ongoing payment responsibilities constrain buyer mobility and financial flexibility, especially for recent buyers and lower-income households: In Q2 2025, a typical family needed 36% of their income just for a mortgage payment on a median new home, and for low-income families, that share jumps to upwards of 71% of their income.³

When qualifying for a home loan depends heavily on income history, credit profile, and cash savings, the system tends to favor those who have already accumulated capital. That dynamic reinforces wealth gaps across generations.

At the same time, millions of Americans have built meaningful net worth in digital assets. Until now, borrowers have not been able to get credit for those assets in the traditional mortgage underwriting process without first liquidating them. That forces a tradeoff: sell long-term holdings and forgo future upside while also potentially triggering capital gains taxes, or miss out on homeownership altogether.

Crypto-backed mortgages change this by solving a key friction impacting all of the above: liquidity. These mortgage types allow crypto holders to secure a home loan without needing to have 100% of the required cash upfront, and without being forced to liquidate their crypto holdings. By enabling borrowers to pledge their digital assets in the mortgage underwriting process, onchain wealth translates into real-world access – expanding the pathways to homeownership while preserving long-term investment positions. 

Crypto-backed mortgages function just like a conventional home loan, with the same legal protections. The key difference is simple: instead of needing to come up with cash for the down payment, borrowers can pledge their crypto holdings as collateral for a separate loan that’s used to cover the down payment. This is a major step forward for crypto’s real-world utility, with this new offering providing the unique benefit of added stability and government backing.

With this process, you get two loans at closing. The first is a standard Fannie Mae mortgage on the home. The second is used to fund your cash down payment, and is secured by the crypto that you pledge. One of the unique things about Better’s structure is that both loans share the same interest rate and amortization term, so you only have to manage one combined monthly payment – a true market first. For example, if you want to buy a $500K home, you can pledge $250K in BTC and get a $100K loan⁴ to cover your cash down payment. Your crypto stays in custody in Better’s Coinbase Prime account for the life of the loan and is returned to you once the loan is repaid. Further, when a borrower chooses to pledge their BTC, the terms of the loan remain unaffected by Bitcoin’s price volatility; if the market fluctuates, your mortgage terms remain the same.

Stablecoins are now widely used for global payments and treasury management. Tokenization is bringing credit funds, sovereign issuances, and capital markets onchain. Institutional adoption of crypto continues to expand. Housing is the next logical frontier.

These new crypto-backed mortgages are the first step in integrating crypto into the core plumbing of the U.S. housing finance system. This is what the Everything Exchange vision looks like in practice: not just trading every asset class onchain, but making those assets usable in the real world. It’s proof that crypto assets can interoperate with regulated, government-backed systems, enabling greater economic freedom and expanding access to the American dream. This new offering aligns with Coinbase's growing flywheel of products, including crypto-backed loans and USDC lending, that are designed to give people more control over how they deploy their capital and build generational wealth.

All you need to get started is a Coinbase account and the Bitcoin or USDC you wish to pledge as collateral for the down payment loan. All Coinbase One members who are approved for a crypto-backed or regular mortgage product through Better will be eligible for a rebate worth 1% of the mortgage value, capped at $10,000, to cover closing costs and fees. For example, a Coinbase One member securing a $800,000 mortgage through Better would be eligible to receive a $8,000 rebate in the form of lender closing credits.⁵ Coinbase One members who pledge USDC holdings can also continue to earn rewards to help offset their monthly servicing costs, creating a new element of affordability for homeownership.

If you're ready to turn your digital wealth into a physical home, you can register for early access and check out common questions here.

Footnotes:

¹ A crypto-backed mortgage lets you buy a home using your crypto without selling it. Instead of putting cash down, you pledge BTC or USDC and receive two loans: a standard Fannie Mae mortgage on the home, and a separate loan that is secured by crypto you pledge and used to fund your cash down payment. 15-year and 30-year fixed mortgage options are available. All loans are subject to credit approval by Better. Any BTC/USDC pledged as collateral will be held in custody by Better on behalf of borrowers, pending full repayment of the underlying downpayment loan obligation. All loans are originated and serviced by Better, and any rebates will be paid by Better.  USDC is not legal tender or currency. USDC held on Coinbase is not subject to protections or insurance provided by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). The USDC rewards rate is subject to change and can vary depending on your region and ongoing experimentation.

² The median age of a first-time homebuyer has reached a record high of 40 in 2025, driven by high mortgage rates, soaring home prices, and limited inventory, according to the National Association of Realtors.

³ NAHB/Wells Fargo Cost of Housing Index (CHI) for Q2 2025, based on a national median income of $104,200 and a median new home price of $410,800 (compared to $429,400 for a median-priced existing home).

⁴ If pledging Bitcoin, initial collateral value must be at least 250% of fiat downpayment loan amount. If pledging USDC, initial collateral value must be at least 125% of fiat downpayment loan amount. For instance, a $250k BTC pledge unlocks a $100k cash downpayment loan and a $125k USDC pledge unlocks a $100k cash downpayment loan. 

⁵ If approved for a loan by Better, Coinbase One members will be eligible for a rebate equal to 1% of the mortgage value, up to a maximum of $10,000. Rebates are applied as a lender credit against closing costs, and any rebates will be paid by Better.