Coinbase and Better close first bitcoin-backed Fannie Mae loan

Coinbase and Better Home & Finance funded the first Fannie Mae‑backed mortgage that uses bitcoin as collateral. The loan closed for a couple in Ann Arbor, Michigan, and the companies plan to make the product available to qualified U.S. borrowers by this summer.

The borrowers, identified as Joe and Amy, are in their early 30s; Joe is a software engineer and Amy is a graduate student. They used their bitcoin holdings as collateral to provide a down payment without selling the assets.

The financing closes with two simultaneous loans. One is a standard Fannie Mae conforming mortgage. The second is a separate crypto‑backed loan that covers the down payment. For example, a $500,000 purchase could be financed with a $400,000 Fannie Mae mortgage and a $100,000 crypto loan for the down payment.

Collateral rules differ by asset. Bitcoin loans typically require about 2.5 times the loan value in bitcoin, while USDC loans generally require roughly 1.25 times the loan amount. Better structures both instruments to share the same interest rate and amortization schedule so borrowers make a single monthly payment.

Loan sizes follow Fannie Mae conforming limits by county and the product offers 15‑year and 30‑year fixed‑rate terms. Pledged crypto remains in custody for the life of the loan on Coinbase’s platform through Better’s custodial account.

Better reported a waitlist representing roughly $250 million in potential loan volume, with more than half of those applicants planning to buy within six months. About 76% of waitlist applicants are Coinbase customers. California, New York and Florida showed the most interest. Better has originated more than $110 billion in loans and reported that 41% of its pre‑approved customers meet credit and income requirements but lack sufficient cash for a traditional down payment.

Mark Troianovski, head of consumer and platform partnerships at Coinbase, described the company view: “At Coinbase, we believe that bitcoin should do more than sit in a wallet. It should work for the people who hold it.” He called the funded loan “one of the most tangible demonstrations” of that idea.

The companies say the product lets borrowers access digital assets for a down payment without liquidating holdings, which can avoid immediate tax consequences tied to selling crypto.