Fannie Mae Enables Cryptocurrency-Backed Mortgages in Partnership with Coinbase

Fannie Mae has introduced a new mortgage program that allows borrowers to pledge cryptocurrency as collateral for down payments. This innovative approach is made possible through partnerships with Coinbase and Better Home & Finance.

The program enables borrowers to transfer their digital assets from Coinbase to a secure custody wallet, retaining ownership of the assets while using them as collateral. This feature avoids the need to sell cryptocurrencies, thus preventing taxable events.

USDC holders can continue earning rewards on their assets even while they are being used as collateral. However, it's worth noting that the mortgages will carry higher interest rates than standard 30-year loans, ranging from 0.5 to 1.5 percentage points higher.