US Mortgage Market Sees Breakthrough with Bitcoin-Backed Loans

Better Home & Finance Holding Company and Coinbase have introduced a groundbreaking mortgage product that utilizes Bitcoin as collateral, marking the first Fannie Mae-backed mortgage in the US. The innovative solution allows borrowers to secure mortgages without having to liquidate their digital asset holdings.

The product supports both Bitcoin and USDC as collateral, enabling qualified borrowers to purchase homes while maintaining their cryptocurrency position. The companies aim to make this product available nationwide by summer 2026.

A married couple in Ann Arbor, Michigan, was the first to close a loan using this mortgage product. They were able to purchase their first home without having to give up their Bitcoin holdings, avoiding capital gains taxes in the process.