A groundbreaking development in the intersection of cryptocurrency and traditional finance has taken place in Michigan, where a couple has secured a Fannie Mae-backed mortgage using Bitcoin as collateral.
The loan, which was funded on June 4, is the first instance of its kind, with government-sponsored enterprise Fannie Mae accepting a conforming mortgage structured around digital assets. The partnership between Coinbase and Better Home & Finance Holding Co. (BETR) has made this possible, with the former managing custody and compliance.
The loan itself is not a single mortgage with Bitcoin as collateral, but rather two loans bundled together at closing. The first is a standard Fannie Mae-backed mortgage, while the second is a separate loan backed by the borrower's digital assets held in custody at Coinbase Prime.