A Michigan couple has closed what Coinbase (NASDAQ: $COIN) and Better described as the first Fannie Mae-backed home loan using Bitcoin as collateral, turning a crypto-mortgage product announced earlier this year into a completed transaction.
The transaction gives Coinbase a new real-world use case for digital assets at a moment when crypto firms are trying to push beyond trading and payments. Working with Better, the exchange said borrowers can pledge Bitcoin against a down payment instead of selling the asset, preserving exposure while avoiding an immediate taxable sale.
The product, first announced in March, is expected to become available to qualified borrowers nationwide this summer. It initially supports Bitcoin and Circle’s USDC (CRYPTO: $USDC), with Better originating and servicing the mortgage and Coinbase providing the crypto account infrastructure.
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The crypto-backed piece is designed to support the down payment rather than replace the mortgage itself. Borrowers still receive a standard Fannie Mae-backed home loan, with a separate crypto-backed loan layered alongside it. In Better’s example, a buyer covers a $100,000 down payment by placing a second lien on the home and pledging $250,000 in Bitcoin. The lender says ordinary market swings will not trigger margin calls or sudden liquidations, though pledged crypto may be liquidated after a 60-day payment delinquency.
Coinbase Head of Consumer and Platform Partnerships Mark Troianovski said “tens of millions of Americans have built real wealth in digital assets,” framing the launch as a way to connect that wealth to homeownership.
Behind the launch is a policy shift at the Federal Housing Finance Agency under director Bill Pulte, who directed Fannie Mae and Freddie Mac to account for certain crypto holdings held on centralized exchanges. Self-custodied assets are not included under that approach.
The early market may be selective, but the first closing gives Coinbase and Better a clear entry point into one of the largest credit markets in the U.S.
Coinbase Global Inc. (NASDAQ: COIN) is currently trading at $163.23 U.S. per share.