Better Mortgage already has a waitlist open for a new home loan product that accepts Bitcoin and USDC as collateral, with plans to launch nationwide this summer and a projected loan volume of $250 million based on signups so far.
How The Product Works
The mortgage lender is partnering with crypto exchange Coinbase to power the transactions behind the scenes.
Borrowers with significant Bitcoin holdings are connected to Better through Coinbase’s product interface, where they go through the application process, get approved, and then authorize their Bitcoin to move into a custodial wallet with a single click, according to Roy Zhang, Coinbase’s director of product.
The first ever Fannie Mae-insured mortgage backed by BTC in the U.S just got funded.
Originated and serviced by Better, powered by Coinbase.
Rolling out nationwide this summer. https://t.co/Arj4NfAlkn
— Coinbase
(@coinbase) June 4, 2026
The first loan under the arrangement was issued to a couple in Ann Arbor, Michigan, identified only as Joe and Amy. Joe said the setup gave him confidence because their Bitcoin remained secure in a custody account rather than being sold off to cover a down payment.
Fannie Mae Backing Adds Weight
What sets this product apart from earlier crypto-collateralized lending experiments is the involvement of Fannie Mae. The government-sponsored enterprise, which announced in March that it would begin accepting crypto for mortgage down payments, provided the conforming guarantee that makes the loan a standard financial instrument.
Better founder and CEO Vishal Garg called that backing significant, saying it amounts to a US government-sponsored enterprise accepting digital assets in place of cash held in a bank account as collateral. He added that the product is expected to expand beyond Bitcoin and USDC to other digital assets, including tokenized stocks, over time.
No Liquidation For Borrowers
One detail that distinguishes the product from standard margin-backed lending is that the collateral is not subject to liquidation. Under the current structure, the pledged Bitcoin and USDC stay in custody for the life of the loan without being sold down if their value falls.
Coinbase announced the first funded loan on X, describing it as the first-ever Fannie Mae-insured mortgage backed by Bitcoin in the US. The full rollout is expected before the end of summer, with Better handling loan servicing and Coinbase managing the underlying digital asset infrastructure.
Featured image from Unsplash, chart from TradingView
