Better launches Bitcoin-backed mortgages powered by Coinbase
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Better Mortgage and Coinbase have launched a Bitcoin-backed mortgage product in the US, allowing buyers to use Bitcoin as collateral for a down payment without selling their holdings. The product combines a Fannie Mae-backed home loan with a separate loan secured by Bitcoin, requiring borrowers to pledge Bitcoin worth at least 250% of the down payment loan. The pledged Bitcoin is held by Better in a Coinbase Prime custodial account and returned upon full repayment or refinancing of the mortgage.
Why it matters
This development integrates digital assets into traditional mortgage financing, reflecting broader industry efforts to acknowledge cryptocurrency holdings in mortgage underwriting. It highlights the evolving acceptance of crypto as an asset class in real estate finance, potentially impacting how borrowers can leverage crypto assets when purchasing homes.
Key context
The product was initially launched through an early-access program earlier in the year. It follows a June 2025 directive from the Federal Housing Finance Agency (FHFA) requiring Fannie Mae and Freddie Mac to consider cryptocurrency held on US-regulated centralized exchanges in single-family mortgage risk assessments. Other lenders like Newrez have also started to recognize cryptocurrency holdings in mortgage applications.
Key numbers and entities
Better Mortgage, Coinbase, Coinbase Prime, Fannie Mae, Freddie Mac, Federal Housing Finance Agency, Newrez, US Census Bureau, Department of Housing and Urban Development, Federal Reserve Bank of St. Louis. Borrowers must pledge Bitcoin worth at least 250% of the down payment loan, and Coinbase One members are eligible for a 1% rebate from Better, capped at $10,000.
What remains unclear
Details about borrower eligibility beyond US residency and Coinbase verification are limited, and the specific loan terms, such as interest rates and amortization lengths, are not disclosed. It is also unclear how volatility management is implemented beyond the stated conditions for liquidation after 60 days of delinquency.