Coinbase (COIN) Stock Rises as Bitcoin-Backed Home Loans Get Fannie Mae Approval

Key Highlights

• A groundbreaking partnership between Coinbase (COIN) and Better Home & Finance (BETR) introduces cryptocurrency-collateralized home loans with Fannie Mae’s backing.
• Homebuyers can use bitcoin or USDC as down payment collateral without liquidating their digital assets.
• The financing structure eliminates capital gains tax liabilities and margin call risks — crypto price fluctuations won’t trigger additional collateral requirements.
• Borrowers will pay rates that are 0.5 to 1.5 percentage points above conventional 30-year mortgage rates.
• Fannie Mae’s acceptance of crypto-collateralized mortgages represents a watershed moment for digital asset integration into traditional finance.

Coinbase (COIN) has partnered with digital mortgage provider Better Home & Finance (BETR) to introduce a cryptocurrency-collateralized mortgage offering that enables prospective homeowners to leverage bitcoin or USDC as down payment security, now supported by Fannie Mae.

This represents an unprecedented milestone for Fannie Mae, which has never previously endorsed such financial products. As a government-sponsored enterprise regulated by the Federal Housing Finance Agency, Fannie Mae’s participation in U.S. housing finance is pivotal. This endorsement could catalyze broader institutional acceptance.

Coinbase Global, Inc., COIN

The financing solution targets ordinary homebuyers rather than exclusively serving wealthy individuals. Coinbase characterized the offering as quintessentially accessible to all Americans.

According to Better’s CEO Vishal Garg, approximately 41% of American households cannot purchase homes due to insufficient down payment funds. Many prospective buyers possess substantial assets in alternative forms, including cryptocurrency holdings.

The mechanics are straightforward: purchasers secure a conventional 15- or 30-year Fannie-backed home loan through Better. Rather than providing cash upfront, a secondary loan is collateralized by bitcoin or USDC stored with Coinbase.

The digital assets move into a custodial wallet managed by Better, though borrowers maintain ownership privileges. USDC holders continue receiving staking returns on their pledged collateral.

Rates for these cryptocurrency-backed products will exceed standard 30-year mortgage rates by 0.5 to 1.5 percentage points, varying based on individual borrower qualifications. Prospective buyers must factor this premium into their financial calculations.

Protection From Market Volatility and Forced Sales

Among the product’s most attractive characteristics is built-in protection against cryptocurrency price volatility. Bitcoin value declines don’t alter mortgage conditions or trigger additional collateral demands.

Liquidation occurs exclusively after 60 days of payment default — identical to conventional mortgage standards. Market volatility alone cannot result in collateral forfeiture.

Mark Troianovski, Coinbase’s head of consumer and platform business development, drew parallels to private banking for affluent clients. “They leverage assets rather than liquidating them for purchases; they secure loans against their holdings,” he explained.

Previous Crypto Mortgage Products Existed, But With Limited Scope

Cryptocurrency-backed home financing isn’t entirely novel. Miami-based Milo has provided such products since 2022, serving more than 100 clients. However, earlier offerings primarily served specialized markets — frequently foreign buyers or luxury property transactions.

Fannie Mae’s participation fundamentally alters the landscape. As the institution that purchases, securitizes, and guarantees mortgages on a massive scale, its underwriting criteria influence industry-wide lending standards.

Better had already pioneered similar territory in February 2023, permitting Amazon employees to pledge company stock for down payment collateral. The cryptocurrency variant employs comparable frameworks while expanding accessibility to Coinbase’s substantial user base.

Gallup data indicates that 14% of American adults held cryptocurrency in 2025. A Redfin survey from 2025 revealed nearly 13% of millennial and Gen Z purchasers liquidated crypto holdings to finance down payments — creating taxable consequences this product is specifically designed to circumvent.

The Trump administration previously instructed Fannie and Freddie Mac to establish protocols for recognizing cryptocurrency as qualifying mortgage application assets last June, demonstrating governmental support for digital asset industry growth.