Coinbase (COIN) Stock Climbs as Crypto Mortgage Goes Mainstream With Fannie Mae

TLDR

• Coinbase (COIN) and Better Home & Finance (BETR) have launched a new crypto-backed mortgage product backed by Fannie Mae.
• Borrowers can pledge bitcoin or USDC as collateral for a down payment instead of selling their crypto.
• The product avoids capital gains tax events and margin calls — even if crypto prices drop.
• Interest rates will run 0.5 to 1.5 percentage points higher than standard 30-year mortgages.
• This is the first time Fannie Mae has accepted crypto-backed mortgages, a major step toward mainstream adoption.

Coinbase (COIN) and mortgage platform Better Home & Finance (BETR) have officially launched a crypto-backed mortgage product that allows homebuyers to use bitcoin or USDC as collateral for their down payment, with backing from Fannie Mae.

This marks the first time Fannie Mae has accepted this type of product. Fannie, which is government-backed and overseen by the Federal Housing Finance Agency, plays a central role in U.S. mortgage markets. Its involvement could open the door for wider use.

Coinbase Global, Inc., COIN

The product is aimed at everyday homebuyers, not just high-net-worth individuals. Coinbase described it as “as American as apple pie.”

About 41% of American families fail to buy a home due to a lack of funds for the down payment, according to Better CEO Vishal Garg. Many of these potential buyers hold assets elsewhere, including crypto.

Here’s how it works: the buyer takes out a traditional 15- or 30-year Fannie-backed mortgage from Better. Instead of a cash down payment, a second loan is backed by either bitcoin or USDC held on Coinbase.

The crypto assets are transferred to a custody wallet with Better, but the borrower retains ownership rights. In the case of USDC, borrowers can still earn staking rewards on their collateral.

Interest rates on the product will run between 0.5 and 1.5 percentage points higher than a standard 30-year mortgage, depending on the borrower’s profile. That extra cost is something buyers will need to weigh up.

No Margin Calls, No Forced Liquidations

One of the more appealing features of the product is its protection against crypto market swings. If bitcoin falls in value, the mortgage terms don’t change and no extra collateral is required.

Liquidation is only triggered by a 60-day payment delinquency — the same standard used in conventional mortgages. Market movements alone won’t cause a borrower to lose their collateral.

Crypto Mortgages Have Existed, But Not Like This

Crypto-backed mortgages aren’t new. Miami-based fintech Milo has offered them since 2022 and currently has over 100 customers. But the previous products have largely catered to niche buyers — often foreign nationals or high-end purchases.

Fannie’s involvement changes the dynamic. Because it buys, packages, and guarantees mortgages at scale, its underwriting standards are widely adopted across the industry.

In February 2023, Better had already moved in this direction, allowing Amazon employees to pledge stock as down payment collateral. The crypto version follows a similar structure but broadens the pool to Coinbase’s crypto-holding customer base.

About 14% of American adults owned crypto in 2025, according to Gallup. A 2025 Redfin survey found nearly 13% of millennial and Gen Z homebuyers sold crypto to help fund their down payments — a taxable event this product is designed to avoid.

The Trump administration directed Fannie and Freddie Mac to prepare to count crypto as a mortgage application asset back in June, citing support for the crypto industry.

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