Better, an AI-native mortgage and home equity finance platform, and crypto exchange Coinbase, today funded the first Fannie Mae-backed mortgage in the United States that uses Bitcoin as collateral, marking a new step in the integration of digital assets into traditional home financing.
According to the official release, the companies announced that the product will become available to eligible borrowers nationwide in summer 2026. The mortgage allows borrowers to pledge Bitcoin as collateral rather than selling their holdings to meet down payment requirements.
First loan closed using Bitcoin collateral
The inaugural loan was issued to a married couple in Ann Arbor, Michigan, who used their Bitcoin holdings to support the purchase of their first home. According to Better, the structure enabled the borrowers to secure financing without liquidating their digital assets, avoiding a taxable sale and maintaining exposure to their long-term investment position.
The product was first unveiled in March 2026 as a Fannie Mae-eligible mortgage designed for borrowers whose wealth is held in digital assets rather than traditional savings accounts.
Product targets cash-constrained borrowers
Better said that a significant portion of its pre-approved borrowers meet income and credit requirements but struggle to accumulate sufficient cash for a conventional down payment. The lender cited changing household balance sheets and the growing role of digital assets in personal wealth accumulation as reasons for developing the product.
Initially, the mortgage supports Bitcoin and the stablecoin USDC as collateral. The companies said additional digital assets could be added in the future, subject to market and regulatory developments.
Coinbase provides custody infrastructure
Coinbase will serve as the digital asset custody and infrastructure provider for the mortgage program. Under the arrangement, borrowers can use qualifying crypto holdings as collateral while accessing a conforming mortgage backed by Fannie Mae. The product combines traditional mortgage underwriting standards with digital asset-backed collateral management.
The launch represents one of the first instances in which cryptocurrency holdings have been directly incorporated into a conforming U.S. mortgage structure.
Coinbase expands crypto-linked financial products
The mortgage launch comes as Coinbase broadens its efforts to connect digital assets with traditional financial markets. On Thursday, the exchange introduced pre-IPO perpetual futures tied to SpaceX on the Coinbase International Exchange, creating its first product under a new pre-IPO derivatives category.
The SPCX-PERP contract allows eligible users outside the United States to gain exposure to SpaceX’s valuation before its planned public listing. Rather than tracking a share price, the contract references a valuation-based index derived from the company’s total equity valuation. Profits and losses are settled in USDC, and the product does not provide ownership rights or physical delivery of shares.
Coinbase said the contract will be converted into a standard equity perpetual future once SpaceX completes its IPO process, highlighting the exchange’s broader push to build financial products around digital assets and private-market exposure.
Crypto wealth finds a path into housing finance
The announcement comes as financial institutions increasingly explore ways to incorporate digital assets into mainstream financial products. Supporters argue that many prospective homebuyers, particularly younger investors, hold substantial portions of their wealth in cryptocurrency and may prefer not to liquidate those assets to purchase a home.
By allowing borrowers to pledge Bitcoin instead of selling it, the new mortgage structure seeks to bridge the gap between digital asset ownership and traditional home financing while remaining within the framework of a Fannie Mae-backed loan program.
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