Coinbase Partners with Better Home & Finance for Crypto-Backed Mortgages

Coinbase has announced a partnership with Better Home & Finance to introduce a new mortgage structure that enables borrowers to use digital assets as collateral for down payments. This innovative approach is set to revolutionize the US housing finance industry by integrating crypto assets directly into mortgage financing.

The model allows qualified borrowers to pledge digital assets such as Bitcoin or USDC as collateral for a separate loan used to fund the down payment, while the primary mortgage remains a standard, Fannie Mae–backed loan. Better will originate and service the mortgages.

This development follows earlier regulatory signals to integrate crypto into mortgage frameworks. In June, the US Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to prepare proposals to recognize cryptocurrency as an asset in mortgage risk assessments without requiring conversion to US dollars.