Coinbase and Better fund first Fannie Mae bitcoin mortgage

On June 4, Coinbase and Better announced they funded the first Fannie Mae-backed mortgage using bitcoin and USD Coin (USDC) pledged as collateral for a separate down-payment loan. The structure lets borrowers obtain a conventional conforming mortgage while keeping digital assets in custody.

Under the arrangement, Better originates and services the mortgage within Fannie Mae’s framework. Coinbase manages custody, compliance controls and operational support for the pledged bitcoin or USDC. The down-payment financing is backed by the borrower’s crypto holdings; the home loan itself remains eligible for Fannie Mae purchase or guarantee.

The product initially supports bitcoin and USDC and targets borrowers who meet income and credit requirements but lack sufficient cash for a traditional down payment. Better reported that 41% of its pre-approved customers qualify on income and credit but do not have enough cash. The first completed loan went to a married couple in their early 30s in Ann Arbor, Michigan, who pledged bitcoin to buy their first home without selling their holdings.

Federal regulators have asked the government-sponsored enterprises to examine cryptocurrency in mortgage risk assessments. Federal Housing Finance Agency Director William J. Pulte directed Fannie Mae and Freddie Mac to explore how crypto assets can be included in single-family mortgage evaluations when assets are verifiable and held on U.S.-regulated centralized exchanges. Fannie Mae’s participation provides a route to national distribution because the enterprise supports a large share of U.S. mortgage credit.

Better noted its platform serves customers in all 50 U.S. states and the United Kingdom and that it has funded more than $110 billion in loan volume. Coinbase highlighted its custody infrastructure and compliance capabilities, which it said support retail users, government agencies and institutional clients globally. Those services connect crypto collateral with a conforming mortgage and a separate down-payment loan.

The announcement stated, “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.” Mark Troianovski, head of consumer and platform partnerships at Coinbase, described the transaction as “one of the most tangible demonstrations of that vision that we have seen.” Both firms described the funding as the first of a nationwide rollout.