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Coinbase Enables Crypto-Backed Down Payments for Fannie Mae Loans

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Crypto Breaking News

Coinbase Global has unveiled a mortgage structure with Better Home & Finance that would let qualified borrowers pledge digital assets held in Coinbase accounts to fund the down payment on a standard conforming mortgage backed by Fannie Mae. In the arrangement, borrowers would secure a separate loan—backed by their crypto holdings, such as Bitcoin or USDC—to cover the down payment, while the primary mortgage remains a conventional Fannie Mae–backed loan. Better will originate and service the mortgages.

Coinbase describes the model as enabling buyers to keep exposure to digital assets while using a crypto-backed loan to cover the down payment. In effect, the down payment is funded by a separate crypto-collateral loan, while the main loan stays tied to traditional mortgage underwriting. If the rollout proves scalable, the approach could widen crypto’s role in U.S. housing finance beyond qualifying assets to a direct funding mechanism for home purchases.

The development arrives amid broader regulatory signals about integrating crypto into mortgage frameworks. In June, the U.S. Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to prepare proposals recognizing cryptocurrency as an asset in mortgage risk assessments without requiring conversion to dollars. The momentum also aligns with a string of underwriting innovations from lenders such as Newrez and Rate, which have begun incorporating crypto holdings into mortgage processes.

Key takeaways

  • A crypto-backed down payment option pairs a standard conforming mortgage with a separate loan secured by digital assets to fund the down payment.
  • The primary mortgage remains Fannie Mae–backed; crypto exposure is retained via the down payment loan, not through liquidation of assets.
  • Regulators are signaling openness to counting crypto assets in mortgage risk assessments, potentially paving the way for broader crypto integration in housing finance.
  • Lenders like Newrez and Rate have already integrated crypto into underwriting, although down payments and closing costs may still require cash in some programs.
  • Borrowers face constraints such as locked collateral and market-volatility considerations that do not automatically trigger margin calls, according to Coinbase.

A new path for crypto in housing finance

Under the Coinbase–Better structure, a borrower would take out a standard conforming mortgage, while a separate loan secured by crypto holdings funds the down payment. The crypto collateral can include assets such as Bitcoin or stablecoins like USDC, but borrowers would not be allowed to trade the pledged assets while they are locked as collateral. Coinbase notes that price swings do not trigger margin calls as long as the borrower keeps making mortgage payments and the loan terms remain unchanged after activation. This approach, if widely adopted, would embed crypto more deeply into the mechanics of home financing rather than merely serving as an underwriting asset.

Better will handle the origination and servicing of the primary mortgage, while the crypto-backed down-payment loan would be a separate obligation. For investors and borrowers, this structure introduces a new dynamic: crypto assets remain a part of the balance sheet and potential wealth-building narrative, but introduce added debt and liquidity considerations tied to market volatility.

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Regulatory signals and industry momentum

The initiative comes amid a broadening discourse on crypto’s place in mortgage risk assessment and underwriting. The Federal Housing Finance Agency’s directive to Fannie Mae and Freddie Mac in June reflects a push to formalize crypto as an asset category that could influence risk metrics without forcing conversion to dollars. The development sits alongside other industry moves toward crypto-inclusive underwriting, with lenders such as Newrez and Rate having publicly signaled their willingness to recognize crypto holdings in certain underwriting contexts.

Newrez, in January, said it would allow borrowers to use Bitcoin, Ether, crypto ETFs, and stablecoins as qualifying assets in underwriting, without requiring liquidation. In February, Rate launched its RateFi program, which allows verified crypto holdings to count toward reserves and, in some cases, income. However, even in RateFi, borrowers typically must convert crypto into cash for down payments and closing costs, illustrating that the integration is gradual and selective rather than a wholesale replacement of cash for home purchases.

Voices from the policy-adjacent arena

Beyond the mechanics, the transition toward crypto in housing finance has drawn commentary from policymakers and industry observers. Former Ohio representative Tim Ryan, a member of Coinbase’s advisory council who has focused on housing affordability, framed mortgage financing as a practical use case for crypto. He argued that digital assets could unlock wealth for early investors and help address a major barrier to homeownership—the down payment—if the industry moves into the housing sector in a meaningful way.

Affordability remains a central concern for U.S. homebuyers, with persistent inventory constraints and elevated mortgage rates keeping activity constrained even as average home prices have eased from their 2022 peaks. The federal data context underscores the potential appeal of crypto-linked financing to buyers who hold digital assets and seek alternative paths to accumulating a down payment.

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As the crypto–mortgage conversation evolves, investors and borrowers will be watching closely for how collateral liquidity, asset valuation, and regulatory alignment interact in real-world deployments. The Coinbase–Better program represents a concrete step in testing crypto as a financing tool within a conventional housing market framework, but it also highlights the importance of clear risk management, valuation standards, and consumer protection as more lenders experiment with crypto-enabled home purchases.

Readers should keep an eye on regulator guidance and lender rollouts in the coming months, which will indicate whether crypto-backed down payments move from a pilot concept to a deployable regional or national option.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Solana Long-Short Ratio Signals Unusual Derivatives Positioning

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Solana Long-Short Ratio Signals Unusual Derivatives Positioning

Solana (SOL) is trading at $87, still down 69% from its January 2025 peak near $295.91. The long-short ratio has skewed above 3:1 on some platforms with retail sitting 65.5% long. That is not a normal reading for an asset trading below every major moving average.

(Source – Coinalyze)

The open interest tells the real story. OI sits at roughly $2.2billion and is contracting, down, even as the long bias intensifies. Price moving up while open interest shrinks is a textbook squeeze signature. Not accumulation. Not conviction.

The math does not support a real rally here.

Discover: The best pre-launch token sales

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SOL Derivatives Setup: Squeeze Risk or Breakout Fuel?

The long-short ratio is being misread by most traders watching it. It measures position count distribution, not capital weight. Longs and shorts are always structurally matched 1:1 in notional size on derivatives markets. A 3:1 long-short ratio means three times as many traders are positioned long, not that three times as much capital is long. That distinction is critical to understanding the actual risk here.

What makes the current setup unstable is the divergence between that bullish tilt and the absence of fresh capital. Sustained long bias with expanding open interest signals conviction. Sustained long bias with shrinking open interest signals a squeeze in progress, shorts being forced out, not bulls stepping in. The neutral funding rate of 0.0038% per 4-hour period confirms it: this is short covering, not new long entries.

On February 28, the largest single liquidation event pushed SOL to a 52-week low of $77.91, per exchange data. Short liquidations on March 5 totaled $2.58M, 75.6% of total liquidations, against just $0.83M in long liquidations. That 3:1 liquidation skew mirrors the ratio skew almost exactly. The squeeze mechanics are already running.

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(Source – SOLUSD, TradingView)

Key technical levels define the binary. The 200-day moving average sits near $150 , structurally far above the current price and representing the ceiling of any meaningful recovery. Near-term, the Changelly model places April channel resistance at $102.51, with $100.37 as the lower bound of that zone. Below current price, the $77.91 February low is the last structural floor before open air.

The bull scenario: price clears $90–$92 with expanding open interest, funding rates tick positive, and the long bias becomes self-fulfilling as momentum traders pile in. SOL’s high-beta profile means a confirmed breakout accelerates fast, similar derivatives setups in other L1s have produced 20–30% moves within days once squeeze momentum flips to genuine accumulation.

The bear scenario: price stalls at resistance, overleveraged longs begin unwinding, and the same reflexivity that would accelerate upside now cascades downside. The Fear & Greed Index at 9, Extreme Fear, alongside a 65.5% long reading, puts the current positioning in the warning zone for pullbacks, as analysts describe it. A breach of $80 triggers the next liquidation cluster.

The long-short ratio is a pressure gauge. Right now it is elevated. That pressure resolves through continuation or liquidation, and without open interest expansion, the liquidation path carries a higher probability. Regulatory developments in crypto derivatives oversight also remain a macro overhang for leveraged positioning across the sector.

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Bitcoin Hyper Targets Early Mover Upside as Solana Tests Key Levels

While Solana navigates an unstable derivatives setup with no structural confirmation of reversal, smart money is rotating into Bitcoin Hyper, a Bitcoin-native L2 infrastructure project designed to bring EVM-compatible execution speed to BTC liquidity without wrapped token exposure.

The project differentiates itself through sub-second finality on a Bitcoin-settled chain, targeting the DeFi and perpetuals market currently dominated by Solana and Ethereum L2s. Its presale has raised $5.9M to date, with the current token price at $0.0115 and staking APY locked at 108% for early participants.

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The presale window closes before the public DEX listing, which historically represents the highest-risk, highest-return entry point for infrastructure plays. Year-end SOL forecasts ranging from $250–$300 reflect broader L1 recovery expectations — but early-stage infrastructure projects with fixed presale pricing offer asymmetric upside independent of SOL’s near-term squeeze resolution.

Join the Bitcoin Hyper Presale Now

This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments carry significant risk, including total loss of capital. Always conduct your own research before making any financial decisions.

The post Solana Long-Short Ratio Signals Unusual Derivatives Positioning appeared first on Cryptonews.

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Coinbase and Better Launch Crypto-Backed Mortgages With Fannie Mae Backing

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Coinbase and Better Launch Crypto-Backed Mortgages With Fannie Mae Backing

Borrowers can pledge Bitcoin or USDC as down payment collateral without triggering a taxable event.

Coinbase and Better Home & Finance announced a partnership on Thursday to offer token-backed mortgages. The product aims to expand access to homeownership while carrying the same Fannie Mae backing as other conforming mortgages.

Qualifying Americans can now pledge Bitcoin or USDC as collateral to fund their cash down payment, securing a standard conforming mortgage without liquidating their digital assets or potentially triggering a taxable event.

How It Works

Instead of needing to come up with cash for the down payment, borrowers pledge their crypto holdings as collateral for a separate loan that covers the down payment. The result is two loans at closing: a standard Fannie Mae mortgage on the home, and a second loan secured by the pledged crypto. Both loans share the same interest rate and amortization term, so the borrower manages a single combined monthly payment — a structure the companies describe as a market first.

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The mortgages are designed in accordance with Fannie Mae guidelines and structured as standard conforming loans, which the companies say will enable significantly lower interest rates than those traditionally associated with token-backed loans.

No Margin Calls

If Bitcoin’s value drops, the mortgage terms remain unchanged, and no additional collateral is required. Market movements alone never trigger liquidation. Collateral is only at risk of liquidation in the event of a 60-day payment delinquency, similar to conforming mortgages.

For borrowers who pledge USDC, the collateral earns rewards that can help offset mortgage payments, enabling borrowers to reduce their net effective interest rate.

Coinbase One members who close a crypto-backed or regular mortgage through Better are eligible for a rebate worth 1% of the mortgage value, capped at $10,000, to cover closing costs and fees.

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Why It Matters

For decades, the path to homeownership has required Americans to sell assets, liquidate investments, or withdraw retirement savings to cover a cash down payment — often triggering capital gains taxes or early withdrawal penalties. Market reports suggest 52 million American adults, or roughly 20% of the adult population, have owned digital assets.

Until now, borrowers have not been able to get credit for those assets in the traditional mortgage underwriting process without first liquidating them. Crypto-backed mortgages change this by allowing onchain wealth to translate into real-world access, expanding the pathways to homeownership while preserving long-term investment positions.

Better CEO Vishal Garg said the partnership “introduces a new pathway to realizing the American Dream for the 52 million Americans who own digital assets.”

The companies plan to expand eligible collateral types over time to include tokenized equities, fixed income, and other tokenized real estate assets, pending market and regulatory conditions.

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This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

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Real-World Perps Thrive, While Altcoins Languish

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Gold, Derivatives, Precious Metals, Financial Derivatives, Energy, Futures, Altcoin Watch, Commodities Investment, Oil and Gas, Standard Chartered

Onchain perpetual futures linked to real-world commodities like precious metals and oil have surged in trading volume, signaling an investor rotation from altcoins to commodity-linked digital assets, according to a report published Thursday by digital asset bank Sygnum.

Trading volume for oil and precious metals perpetual futures markets on the Hyperliquid decentralized exchange (DEX) accounts for over 67% of HIP-3 contracts in Q1 2026, also known as “Builder-Deployed Perpetuals,” on the Hyperliquid platform, according to the report.

Previously, indexes accounted for about 90% of HIP-3 trading activity, but this has fallen to about 17%, according to Sygnum.

Gold, Derivatives, Precious Metals, Financial Derivatives, Energy, Futures, Altcoin Watch, Commodities Investment, Oil and Gas, Standard Chartered
HIP-3 trading volumes by asset class. Source: Sygnum

Weekend HIP-3 trading activity has surged by about 9x since January 2026, the report said, adding, “This is likely due to an uptick in crypto-native traders rotating into traditional assets as the broader altcoin market continues to underperform.” 

Lucas Schweiger, Sygnum digital asset ecosystem research lead, told Cointelegraph that this shift toward onchain digital assets is corroborated by a 250% year-over-year surge in the market cap of tokenized real-world assets (RWAs).

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There are about $23 billion in tokenized real-world assets that are traded on permissionless blockchain networks at the time of this writing, he said.

Gold, Derivatives, Precious Metals, Financial Derivatives, Energy, Futures, Altcoin Watch, Commodities Investment, Oil and Gas, Polymarket, Standard Chartered
HIP-3 weekend trading volume. Source: Sygnum

He also said that traders are treating altcoins as “leveraged BTC proxies.” Schweiger told Cointelegraph:

“That creates an environment where crypto-native capital naturally gravitates toward traditional asset perps that can be traded through the same wallet, using the same margin, just a different trade.”

The ongoing war in the Middle East and the disruption to energy infrastructure have caused oil prices to spike, while many altcoins are already down 80-90% below their all-time highs, according to Sygnum.

Related: Bitcoin leads, altcoin indicators drop to intriguing lows: Time for an altseason?

Recessionary concerns mount as Middle East war drags on

The war between the United States, Israel and Iran has disrupted critical energy infrastructure across the Middle East, causing global oil prices to spike to a high of about $120 per barrel.

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Oil prices have whipsawed since the start of the conflict, rising or falling in response to comments made by US President Donald Trump and the Iranian government or ongoing developments in the geopolitical crisis.

If the price of oil remains above $100 per barrel in 2026, it will cause inflation to spike, according to Nic Puckrin, market analyst and founder of the Coinbureau media channel.

Traders are still pricing in a potential de-escalation or a quick end to the conflict, but Puckrin warned they may be in for a “rude awakening ”if the crisis persists and higher inflation derails any hopes of further interest rate cuts in 2026.

Gold, Derivatives, Precious Metals, Financial Derivatives, Energy, Futures, Altcoin Watch, Commodities Investment, Oil and Gas, Polymarket, Standard Chartered
2026 US recession odds surge to 36%. Source: Polymarket

Since the start of the conflict on February 28, the odds of a US recession have surged to 36% on the Polymarket prediction market platform.

The US economy now has a near 50% chance of entering a recession in 2026, according to ratings agency Moody’s. 

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Magazine: Bitcoin’s ‘narrative vacuum,’ Ethereum now inevitable: Trade Secrets