Coinbase and Better Home & Finance Holding Company announced on June 4 the funding of the first Fannie Mae-backed mortgage supported by bitcoin collateral in the United States. Borrowers can pledge bitcoin or USD Coin (USDC) to finance a down payment while retaining their crypto holdings. The milestone follows Federal Housing Finance Agency Director William J. Pulte's directive to 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.
Borrowers Pledge Bitcoin or USDC for Down Payment Financing
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. 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."
Better said 41% of its pre-approved customers qualify on income and credit but lack cash for a traditional down payment. The company also said first-time homebuyers have reached a median age of 40, up from 32 a decade earlier.
Fannie Mae supports trillions of dollars in U.S. mortgage credit and plays a central role in the country's housing finance system.
First Completed Loan Went to Michigan Couple
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 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.
Coinbase Manages Custody and Compliance for Pledged Assets
Better chose Coinbase to manage the digital asset side of the structure, including secure custody, compliance controls, and operating support. Coinbase serves millions of retail users, more than 150 government agencies, and over 300 institutional clients globally.
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."
FAQ
What did Coinbase and Better announce on June 4?
Coinbase and Better Home & Finance Holding Company announced the funding of the first Fannie Mae-backed mortgage supported by bitcoin collateral in the United States. Borrowers can pledge bitcoin or USDC to finance a down payment while retaining their crypto holdings.
Who received the first bitcoin-backed mortgage?
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 pledged bitcoin to buy their first home while preserving their long-term crypto position.
What role does Coinbase play in the mortgage structure?
Coinbase manages the digital asset side of the structure, including secure custody, compliance controls, and operating support for the pledged bitcoin or USDC. Better originates and services the Fannie Mae-backed mortgage.
