USDBetter, Coinbase Expand Crypto-Backed Mortgage Access
Bitcoin can secure a separate down-payment loan without forcing borrowers to sell their holdings
TL;DR
- Better Mortgage and Coinbase have made their token-backed conforming mortgage generally available to Coinbase One members.
- The structure pairs a Fannie Mae-backed mortgage with a separate Bitcoin-secured down-payment loan.
- Borrowers can retain their Bitcoin while using it as collateral, subject to Better’s underwriting and repayment requirements.
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Better Mortgage and Coinbase announced on Aug. 26, 2026, that their token-backed conforming mortgage was generally available to Coinbase One members, expanding a home-financing structure that allows eligible U.S. borrowers to pledge Bitcoin as collateral for a down payment without selling it. The expanded offer had become available to Coinbase One members applying for eligible Better mortgage products on Aug. 12, 2026.
The companies first announced the token-backed mortgage in March 2026 and initially offered it through an early-access program. The first lien is structured as a standard conforming mortgage under Fannie Mae guidelines, while the crypto-backed portion operates as a separate down-payment loan secured by Bitcoin.
According to Coinbase’s Help Center, borrowers must pledge Bitcoin worth at least 250% of the down-payment loan. The pledged Bitcoin is transferred to Better’s custodial account on Coinbase Prime and remains there under the loan terms.
The mortgage and the Bitcoin-secured down-payment loan carry the same interest rate and amortization term, Coinbase said. Borrowers repay both through a single monthly payment, and the pledged Bitcoin is returned after 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. Better can, however, liquidate the pledged Bitcoin if a borrower becomes 60 days delinquent on payments, according to Coinbase.
Borrowers must be U.S. residents with a verified Coinbase account and remain subject to Better’s credit, income and other underwriting requirements.
Coinbase One members receive lender credit
Coinbase One members approved for eligible Better home-financing products can receive a lender credit equal to 1% of the mortgage value, capped at $10,000. Better said the credit is applied against closing costs and reflected on the borrower’s closing disclosure.
The lender credit also applies to eligible standard mortgages, home equity lines of credit and refinances.
Better and Coinbase said in June 2026 that the down-payment collateral program would support Bitcoin and USDC. The companies also opened a waitlist that month to gauge early demand ahead of general availability.
Ziggy Jonsson, chief technology officer at Better Mortgage, said, “This partnership has always been about expanding access to homeownership by meeting borrowers where they are.”
“By allowing Coinbase One members to pledge crypto as collateral without selling their holdings, we're opening a new path toward homeownership for a generation of borrowers whose wealth increasingly lives onchain,” Jonsson said.
Crypto gains a larger role in mortgage underwriting
The product follows broader efforts to incorporate cryptocurrency into U.S. mortgage underwriting. In June 2025, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to develop proposals to consider cryptocurrency held on U.S.-regulated centralized exchanges as an asset in single-family mortgage risk assessments without requiring conversion to U.S. dollars.
The Federal Housing Finance Agency also directed the two government-sponsored enterprises to consider risk-mitigation measures addressing cryptocurrency volatility and to submit proposed changes to their boards for approval before FHFA review.
Mortgage lender and servicer Newrez announced in January 2026 that it would begin recognizing certain cryptocurrency holdings when evaluating mortgage applications starting in February 2026, including applications for home purchases and refinancing.
The expansion comes while U.S. housing prices remain historically elevated. The median sales price of a new U.S. home was about $400,000 in 2026, according to U.S. Census Bureau and Department of Housing and Urban Development data compiled by the Federal Reserve Bank of St. Louis. New-home prices had declined from their 2022 levels but remained historically high.
This article has been refined and enhanced by ChatGPT.
