Coinbase Lets Bitcoin, USDC Back Fannie Mae Down Payments

Coinbase and mortgage partner Better Home & Finance announced a program that will allow qualified borrowers to pledge Bitcoin or the USDC stablecoin as collateral to fund down payments on Fannie Mae-backed mortgages, scheduled to begin by summer 2026.

Under the arrangement borrowers would pledge digital tokens as collateral rather than selling them to raise cash. The initial program will accept Bitcoin (BTC) and USDC, and company materials say additional assets could be added later.

The plan follows guidance issued by the Federal Housing Finance Agency in June 2025 directing Fannie Mae and Freddie Mac to consider cryptocurrency holdings in mortgage risk assessments without requiring conversion into U.S. dollars.

Other lenders have taken similar steps. In February Newrez began allowing borrowers to use cryptocurrency holdings when applying for mortgages.

Cryptocurrency price volatility may affect underwriting and collateral valuation over a loan’s term, and lawmakers have raised concerns. In July 2025 five U.S. senators wrote to FHFA Director Bill Pulte saying that treating unconverted crypto assets as underwriting collateral could pose risks to the stability of the housing market and the financial system. Some senators also alleged Pulte was “unduly influenced” by President Donald Trump in supporting the guidance.

Republican Senator Cynthia Lummis introduced the 21st Century Mortgage Act in July 2025 to codify the FHFA guidance into law and said regulators should adapt to modern financial assets.

Vishal Garg, founder and CEO of Better Home & Finance, wrote in company posts that the product aims to help buyers whose wealth is tied up in digital assets. “We’re excited to expand access to all qualified borrowers to fix an ongoing issue: buyers who qualify on every measure that matters but cannot clear the down payment hurdle because their wealth isn’t where the system expects to find it,” he wrote. Garg added in a March post, “This isn’t a niche thing. It’s what everyone is going to do once most financial assets are tokenized. It’s just a better way to buy a house.”

Company materials did not publish full details on valuation methods, collateral-monitoring practices or contingency procedures for rapid price swings. The program remains set to begin by summer 2026 for qualified borrowers using Bitcoin and USDC as collateral on Fannie Mae-backed down payments.