Better Mortgage and Coinbase have moved their Bitcoin-backed mortgage offering out of the early-access phase and made it generally available to US homebuyers, the companies announced Wednesday. The product is designed to let borrowers use Bitcoin as collateral for a down payment without selling their BTC, while still securing a Fannie Mae-backed home loan.

Under the structure described by Coinbase, buyers take a Fannie Mae-backed mortgage alongside a separate down payment loan that is secured by Bitcoin. Borrowers must pledge BTC worth at least 250% of the down payment loan, with the pledged assets transferred to Better’s custodial setup through Coinbase Prime.

Key takeaways

• Better and Coinbase say the Bitcoin-backed down-payment feature is now broadly available to US borrowers.
• Coinbase’s Help Center states the pledged BTC must be at least 250% of the down payment loan value.
• Bitcoin price drops do not automatically trigger margin calls or changes to mortgage terms.
• Better can liquidate pledged BTC if a borrower becomes 60 days delinquent.
• Eligible Coinbase One members may receive a 1% Better rebate, subject to a $10,000 cap for closing costs and fees.

How the token-backed mortgage is structured

The core of the offering is a two-part financing model. First, borrowers obtain a Fannie Mae-backed home loan. Second, they use a separate down payment loan that is collateralized with Bitcoin, allowing the borrower to retain exposure to BTC rather than converting it to fiat for the down payment.

Coinbase says both loans share the same interest rate and amortization schedule, and are repaid through a single monthly payment. It also states that the pledged Bitcoin is returned after the mortgage is fully repaid or refinanced—subject to the applicable loan terms.

In practice, the collateral requirement is designed to cushion volatility. The 250% pledge-to-loan threshold means the down payment collateral is over-collateralized relative to the down payment loan itself.

What happens if BTC falls or payments slip

One of the most important investor and borrower questions is whether Bitcoin volatility would force liquidation in response to price movements alone. According to Coinbase, declines in the Bitcoin price by themselves do not trigger margin calls or cause changes to the mortgage terms.

Instead, the main trigger for collateral action is tied to repayment performance. Coinbase states that Better may liquidate the pledged BTC if a borrower becomes 60 days delinquent on payments. That distinction matters: the risk mechanism is linked to mortgage delinquency and loan obligations rather than an automatic adjustment based purely on market price swings.

Eligibility and borrower requirements

Coinbase says the program is limited to US residents and requires a verified Coinbase account. Borrowers also remain subject to Better’s standard credit, income, and other underwriting requirements, meaning the offering does not remove conventional mortgage qualification criteria.

For certain users, there is an additional incentive. Coinbase One members are eligible for a 1% rebate from Better, according to Coinbase, with the rebate capped at $10,000. Coinbase says that rebate can be used toward closing costs and fees, aligning part of the benefit with transaction costs tied to home purchases or refinancing.

Better and Coinbase first unveiled the token-backed mortgage in March through an early-access program, and now the feature has been rolled out more broadly.

Earlier coverage described the initial rollout of Coinbase’s token-backed down payment concept for Fannie Mae loans here: Coinbase launches token-backed down payments for Fannie Mae loans.

Why this expands beyond one product: crypto in US mortgage underwriting

This Bitcoin-backed mortgage arrives amid a broader push to incorporate digital assets into US mortgage risk assessment and eligibility frameworks. In June 2025, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to develop proposals to consider cryptocurrency held on US-regulated centralized exchanges as an asset when assessing risk for single-family mortgages—without requiring that the crypto be converted to US dollars.

The FHFA directive also asked the two government-sponsored enterprises to evaluate risk-mitigation steps for crypto’s volatility and to submit proposed changes for board approval before the FHFA’s review. In other words, the regulatory prompt focused on how to incorporate digital assets into underwriting and risk management, not merely on allowing them as a marketing feature.

Other lenders have started taking similar steps. Cointelegraph previously reported that mortgage lender and servicer Newrez announced in January that it would recognize certain cryptocurrency holdings when evaluating mortgage applications starting in February, including for home purchases and refinancing. That effort points to an emerging trend: crypto is moving from a niche “side asset” consideration toward a more formal underwriting input, even if the exact mechanics vary by lender.

Housing affordability backdrop and what to watch next

The timing also matters given the broader affordability environment. The Federal Reserve Bank of St. Louis, citing data from the US Census Bureau and the Department of Housing and Urban Development, compiled figures showing median sales prices for new US homes around $400,000 in 2026—levels that remain historically elevated even as they have eased since earlier peaks.

For borrowers who hold Bitcoin, token-backed down payments could be attractive if they want to avoid selling during a volatile period. But the product still depends on traditional mortgage underwriting, and the collateral is not fully risk-free: the program’s terms allow liquidation if payments fall behind for 60 days.

Going forward, market participants will likely watch how widely the product expands, how lenders continue to refine collateral and delinquency mechanics, and whether broader FHFA-driven underwriting proposals translate into more standardized approaches across the mortgage industry.

Wall Street research company Bernstein expects Bitcoin to recover from its latest downturn, reclaim its 2025 high and set new records in the coming years heading into the peak of its historical cycle.

Bernstein expects Bitcoin (BTC) to reclaim $125,000 by late 2026 under both its base and bull cases, according to a research report published Wednesday and seen by Cointelegraph.

The company said Bitcoin gained 28% over the previous 10 days after falling about 50% from its October 2025 peak, a rebound that could signal the end of the current bear cycle.

The analysts’ call comes as institutional investors and corporate Bitcoin buyers play a bigger role in the market, which Bernstein said provided greater downside support during the latest cycle and contributed to a smaller drawdown than the 75% to 90% declines of previous cycles.

Next cycle could see Bitcoin reach $300,000

Bernstein’s base case puts Bitcoin at $150,000 by mid-2027 before reaching a cycle peak of about $300,000 in 2029. Its bull case puts the biggest crypto at $200,000 by mid-2027 and $500,000 in 2029.

The company maintained its longer-term BTC target of about $1 million by 2033 under both scenarios.

Bernstein’s forecast is based on Bitcoin’s historical four-year cycles, which the company links to the halving, an event that cuts the amount of new Bitcoin awarded to miners roughly every four years. Bernstein divides each cycle into four phases: breakout, hype, drawdown and accumulation.

Source: Bernstein

The company then estimates Bitcoin’s potential price during those cycles by comparing it with the marginal cost of producing Bitcoin, or the estimated cost for the least efficient miners to produce new coins.

Related: Strategy’s $66B Bitcoin machine hinges on capital markets, not BTC price: Report

“We assume that the price-to-marginal cost multiple will behave in a similar manner to previous 4-year cycles,” Bernstein analysts said.

Under Bernstein’s base case, that multiple falls from 1.4 times at Bitcoin’s $125,000 peak in 2025 to 1.25 times at a projected $300,000 peak in 2029 and about 1.2 times at $1 million in 2033.

Strategy could ramp up Bitcoin buying

Bernstein also expects a Bitcoin recovery to improve the outlook for Strategy, the world’s largest corporate Bitcoin holder. Strategy holds 840,447 BTC, equivalent to about 4% of Bitcoin’s maximum supply of 21 million coins.

The analysts maintained their “Outperform” rating on Strategy but cut its MSTR price target to $350 from $450, citing accelerated equity dilution and its updated Bitcoin cycle outlook. MSTR closed at $126.83 on Tuesday, up 3.4% on the day, according to Yahoo Finance.

Source: Bernstein

Bernstein said continued Bitcoin strength, combined with a recovery in Strategy’s Stream (STRC) preferred stock to around $100, could allow the company to “go kinetic again” with Bitcoin purchases after selling around 7,000 BTC in 2026. STRC closed at $97.15 on Tuesday, according to Yahoo Finance.

Recent analysis from Regime Intelligence said Strategy’s Bitcoin treasury may be less vulnerable to a crypto market crash than to a prolonged loss of capital-market access, a risk that could threaten its ability to fund roughly $1.76 billion in annual obligations without selling BTC.

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After what feels like a lifetime in the making, the SEC’s proposed new Regulation Crypto Assets rules could finally make public token sales easier in the United States.

The proposal would allow qualifying issuers to raise up to $75 million during any 12-month period, and potentially allow projects to return to investors to raise more funds year after year as they build out their networks.

That could create a new, staged model for token fundraising, and potentially make early allocations more attractive to investors betting on higher valuations later.

But before you put the champagne on ice, it’s unlikely to bring back the freewheeling initial coin offering mania of 2017, according to Lee Reiners, a Duke University lecturing fellow and financial regulation expert. He tells Magazine:

“My initial view is that the $75 million exemption could make public token offerings more feasible, but it is unlikely to produce a return to the ICO boom.”

Could projects raise $75M every year?

The Securities and Exchange Commission’s proposal, unveiled Aug. 18, creates two exemptions for certain investment contracts involving crypto assets.

SEC Proposes New Regulation Crypto Assets. Source: SEC

The first is a one-time exemption for startups for offerings of up to $5 million over four years, and the second is a larger fundraising exemption allowing up to $75 million in each 12-month period.

Related: MiCA cracks down on USDT in Europe… but no one else cares

The latter is modeled in part on Regulation A and comes with disclosure and ongoing reporting requirements.

Does the rolling nature of the $75 million limit mean a project could simply raise $75 million, build for a year, then come back for another $75 million?

The answer appears to be yes.

Drew Hinkes, partner at Winston & Strawn, tells Magazine the 12-month limitation would allow for “serial raises” of $75 million every 12 months, “provided they are actually distinct offerings.”

So what’s the catch?

Lilya Tessler, partner and leader of Sidley’s Global FinTech and Blockchain group, says that while “nothing prevents an issuer from relying on the exemption more than once,” each raise “isn’t automatic.”

Subsequent raises would require filing a new offering statement and undergoing an SEC staff review, and issuers would have to keep filing annual and semiannual reports. They would also need to “disclose what the issuer raised under the exemption in the prior 12 months so the cap can be verified,” Tessler says.

Still, the proposed rules offer a substantial upgrade from the status quo. A project seeking $225 million in total, for example, could potentially raise the funds in chunks and return to investors later with a more developed network — and a higher valuation.

Could a cap create ICO-style FOMO?

That raises another obvious question. Could the $75 million ceiling make early token allocations more sought-after, unleashing a frenzy of get-rich-quick-induced FOMO in the first round?

Possibly. Reiners says that’s one potential outcome:

“If investors expect a successful issuer to conduct later offerings at a higher valuation, an initial allocation may become more attractive precisely because it is limited.”

However, that’s not dissimilar to how many token and equity sales are currently structured. SpaceX sold fewer than 5% of its total equity during the recent IPO. “Scarcity in both token sales and exempt securities offerings of traditional securities long predate this proposal — issuers have always been able to limit round sizes and can continue to do so,” says Tessler.

Non accredited investors also won’t be able to go “all in” on any one token sale like they have in the past. Tessler says the SEC’s proposal limits them to buying “10% of the greater of their income or net worth,” regardless of which round they participate in.

Related: White hat hacker recovers $2M from faulty 2016 ICO smart contract

Why this probably won’t be 2017 all over again

There are other reasons not to expect 2017 to return — not least because a generation of crypto investors have been burned by the extravagant promises and terrible tokenomics of previous ICOs. Up to 90% of projects funded via ICOs between 2017 and 2019 ended up failing. Reiners points out that fundraising markets are “shaped by investor appetite, token economics, liquidity, custody, and the reputational damage left by the last ICO cycle.”

The SEC estimates that around 130 offerings would use the two new exemptions each year, and around 475 issuers will potentially use the broader investment contract safe harbor. That’s less of a tsunami and more of a steady trickle.

SEC proposed long-awaited regulation for primary token issuance. Source: Galaxy.

But the SEC proposal is still very positive for token issuers trying to navigate a legal minefield around securities laws in the US — the kind Tezos and Telegram would have chewed their right arms off after their multimillion-dollar US securities-law battles.

Rather than force issuers to self-evaluate whether their offerings fit within existing securities law frameworks, the SEC is proposing an explicit regulatory pathway for raising capital. As crypto lawyer Jake Chervinsky says, “not one day too soon.”

What happens when the token starts trading?

There are some potential minefield though. The SEC’s proposal says the investment contract associated with a crypto asset can continue to transfer to subsequent purchasers in secondary market transactions until the crypto asset separates from the issuer’s representations or promises.

In other words, if the team selling a non-security token suggest that investors in the secondary market can reasonably expect to profit from essential managerial team efforts, then it could become subject to an investment contract.

Related: ‘We refused to do an ICO’: The truth behind Canton’s tokenomics

Hinkes sees that creating a potential problem:

“If a transaction of a non-security covered crypto asset causes the transfer of the investment contract from cryptoasset seller to cryptoasset buyer, there is a risk that the sale of the crypto asset would be viewed as a securities transaction.”

That could become a problem for exchanges and other trading venues.

A new route for fundraising — but old risks remain

SEC moves forward with Reg Crypto. Source: Jake Chervinsky

The potential for tokens to fall into a no man land between security and non-security also worries Reiners. He says that projects could learn how to operate within the new framework without addressing the underlying investor protection concerns:

“A public offering exemption could become a vehicle for regulatory arbitrage […] A token issuer may satisfy the formal conditions for an exempt sale while continuing to market an asset whose value depends heavily on the issuer’s managerial efforts.”

That would leave retail investors in the same grey area as a decade prior, exposed to “opaque disclosures, concentrated insider holdings, and aggressive promotion.”

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High-performance blockchains often run into the same architectural limit, where the execution sits directly in the path of consensus. In a conventional synchronous model, validators must first execute the transactions inside that block to confirm the resulting state transitions are valid.

The design keeps the network deterministic, but it also turns computation into a shared bottleneck. Whether they involve richer smart contract logic, cross-system coordination, or heavier state updates, the more complex the transactions are, the more the network’s speed depends on how quickly validators can process them.

The slowest computation on that path can end up constraining the pace of the entire system. Many networks have already spent years improving finality, networking efficiency and block propagation.

Execution has become the next architectural constraint. Rather than only optimizing how quickly validators reach agreement, newer designs are starting to ask whether execution needs to remain inside the consensus loop at all.

Shifting to an asynchronous computation pipeline

CTDG Dev Hub participant MultiversX removes that constraint with Supernova, now live on testnet, by decoupling consensus from execution so the network can agree on blocks before processing their transactions.

Before Supernova, block production followed a sequential pattern. A proposer selected transactions, executed them locally and proposed a block with those results. Validators then had to re-execute the same transactions before voting, which placed execution squarely on the consensus-critical path.

Supernova changes that order: The proposer selects transactions and proposes the block without executing them first. Validators verify that the proposal follows protocol rules and can vote immediately, while execution continues asynchronously in the background. The resulting execution output is normally referenced and notarized in the next block header, so execution trails consensus by roughly one block, or about 600 milliseconds.

The upgrade also fits into Cointelegraph Decentralization Guardians’ broader work with MultiversX. Cointelegraph joined the network as a validator through the CTDG program in March 2026, extending the relationship into infrastructure participation.

MultiversX is also an official CTDG Dev Hub partner, connecting the protocol to a broader community of developers and blockchain users. The relationship already has practical depth as the MultiversX Foundation delegated to the CTDG validator, and the Dev Hub team built a dedicated validator dashboard on MultiversX. 

From a builder perspective, in-shard finality lands as soon as the proof is available, usually within the same round at around 100–250 milliseconds, alongside more predictable execution conditions. These conditions matter most for applications that depend on tight feedback loops, such as high-frequency DeFi primitives, onchain order books and other systems that begin to break down when latency enters the user experience.

Supernova has already been producing 600-millisecond blocks on the live testnet and devnet since Aug. 20, with the broader goal of making onchain interactions feel immediate. Mainnet activation is expected to follow on Sept. 10, 2026. The transition reflects a wider push toward blockchains that behave more like responsive application infrastructure than delayed settlement engines.

Better Mortgage and Coinbase have made their Bitcoin-backed mortgage product generally available, allowing US homebuyers to pledge Bitcoin as collateral for a down payment without selling it, the companies announced Wednesday.

According to Coinbase’s Help Center, the product pairs a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin (BTC). Borrowers must pledge BTC worth at least 250% of the down payment loan, with the pledged BTC transferred to Better’s custodial account on Coinbase Prime.

The two loans carry the same interest rate and amortization term and are repaid through a single monthly payment, Coinbase said. The pledged BTC is returned once the mortgage is fully repaid or refinanced, subject to the loan terms.

Bitcoin price declines alone do not trigger margin calls or changes to the mortgage terms. However, Better can liquidate the pledged BTC if a borrower becomes 60 days delinquent on payments, according to Coinbase.

Borrowers must be US residents with a verified Coinbase account, and remain subject to Better’s credit, income and other underwriting requirements. Coinbase One members are also eligible for a 1% rebate from Better, subject to a $10,000 cap, that can be used toward closing costs and fees.

Better and Coinbase first announced the token-backed mortgage in March, initially opening it through an early-access program.

Related: 77% of Americans see crypto in retirement plans as risky: Survey

Crypto gains ground in US mortgage market

The Better-Coinbase product comes amid broader efforts to incorporate digital assets into US mortgage underwriting.

In June 2025, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to develop proposals to consider cryptocurrency held on US-regulated centralized exchanges as an asset in single-family mortgage risk assessments, without requiring conversion to US dollars.

FHFA directive ordering Fannie Mae and Freddie Mac to consider cryptocurrency in mortgage risk assessments. Source: William Pulte

The directive also required the two government-sponsored enterprises to consider risk-mitigation measures for crypto’s volatility and submit any proposed changes to their boards for approval before FHFA review.

Other US lenders have also begun moving in that direction. Mortgage lender and servicer Newrez announced in January that it would recognize certain cryptocurrency holdings when evaluating mortgage applications beginning in February, including for home purchases and refinancing.

The expansion of Bitcoin-backed home financing comes as US housing prices remain near historic highs. The median sales price of a new US home was about $400,000 in 2026, according to data from the US Census Bureau and Department of Housing and Urban Development compiled by the Federal Reserve Bank of St. Louis.

US median new home prices have fallen since 2022, but remain historically elevated. Source: Federal Reserve Bank of St. Louis

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Better Mortgage and Coinbase have expanded their Bitcoin-backed mortgage option, moving it into general availability for eligible US homebuyers. The product is designed to let borrowers use Bitcoin as collateral for a down payment while keeping the primary home loan tied to a Fannie Mae-backed mortgage.

Announced Wednesday, the offering combines two linked loans: a Fannie Mae-backed home loan from Better and a separate down payment loan secured by Bitcoin. According to Coinbase’s Help Center, borrowers must pledge BTC worth at least 250% of the down payment loan amount, with the pledged Bitcoin transferred to Better’s custodial account on Coinbase Prime.

Key takeaways

• Better and Coinbase’s token-backed mortgage is now generally available to qualifying US borrowers.
• Borrowers pledge Bitcoin to secure the down payment loan, without having to sell BTC.
• Coinbase states Bitcoin price declines alone do not automatically trigger margin calls or mortgage term changes.
• Better may liquidate pledged BTC if a borrower is 60 days delinquent on payments.
• Eligible Coinbase One members can receive a Better rebate, subject to a $10,000 cap.

How the Bitcoin-collateral mortgage works

The structure is built around two synchronized components with shared repayment timing. Coinbase said both loans use the same interest rate and amortization term, and repayment occurs through a single monthly payment.

Once the mortgage is fully repaid or refinanced, the pledged BTC is returned, provided the loan terms are satisfied. Coinbase emphasized that the mortgage is not designed to reprice automatically based purely on Bitcoin volatility.

Specifically, Coinbase notes that declines in the BTC price by themselves do not trigger margin calls or change mortgage terms. The key exception is delinquency: if a borrower becomes 60 days past due on payments, Better has the ability to liquidate the pledged Bitcoin, according to Coinbase.

Eligibility and incentives for borrowers

Participation is limited to US residents with a verified Coinbase account, and borrowers remain subject to Better’s standard credit, income, and underwriting requirements. Coinbase also said the product is delivered through Better’s mortgage process, with BTC held in Better’s custody via Coinbase Prime.

Coinbase One members are eligible for a 1% rebate from Better, subject to a $10,000 cap. The rebate can be applied toward closing costs and fees, which may reduce upfront transaction expenses for qualifying borrowers.

Regulatory momentum behind crypto in mortgage underwriting

The rollout arrives during a period of increasing institutional attention to how digital assets could be treated within US mortgage risk models. In June 2025, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to develop proposals to consider cryptocurrency held on US-regulated centralized exchanges as an asset in single-family mortgage risk assessments—without requiring that the crypto be converted to US dollars.

The FHFA directive also asked the enterprises to consider risk-mitigation measures tied to crypto’s volatility and to submit proposed changes to their boards for approval before the FHFA review process.

That direction is part of a broader shift in how lenders and regulators approach collateral quality and volatility. Rather than forcing borrowers to exit exposure to digital assets at origination, the emerging framework aims to evaluate crypto holdings directly, provided that volatility controls and governance are in place.

Other lenders moving—and what comes next for borrowers

Coinbase and Better are not the only players testing this approach. Mortgage lender and servicer Newrez announced in January that it would recognize certain cryptocurrency holdings in its mortgage application evaluations beginning in February, covering both home purchases and refinancing. The movement suggests that, while the specifics vary by lender, the market is increasingly experimenting with practical pathways for incorporating regulated crypto holdings into underwriting.

Housing affordability remains constrained even as crypto-linked collateral options expand. US housing price levels have stayed elevated by historical standards, even after some pullbacks: data compiled by the Federal Reserve Bank of St. Louis indicates the median sales price of a new US home was about $400,000 in 2026, using figures from the US Census Bureau and the US Department of Housing and Urban Development.

For investors and borrowers alike, the Better-Coinbase expansion is likely to be watched as an early test case for whether “hold-to-borrow” models can scale in mainstream mortgage workflows. Key uncertainties remain around how different volatility scenarios are handled across lenders, how regulators will evaluate risk-mitigation proposals, and whether more mortgage originators will follow Fannie Mae and Freddie Mac’s evolving guidance.

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