Coinbase Global has launched a new mortgage structure in partnership with Better Home & Finance that allows qualified borrowers to pledge digital assets held in Coinbase accounts as collateral to fund down payments on home loans. The primary mortgage remains a standard conforming loan structured in line with Fannie Mae guidelines, while Better will originate and service the mortgages. Assets eligible for collateral include Bitcoin and USDC, among other digital holdings.
Under the arrangement, borrowers take out a separate loan secured by their crypto holdings to cover the down payment, rather than liquidating those assets outright. This allows buyers to maintain exposure to digital assets while using additional debt in place of upfront cash. Coinbase noted that borrowers cannot trade pledged collateral while it remains locked under the agreement.
The company also clarified that market volatility alone does not trigger margin calls, provided borrowers continue making regular payments, and that mortgage terms remain fixed once the loan is active. However, price fluctuations in the underlying crypto assets may still affect a borrower’s broader financial risk profile over time. The structure represents a more direct integration of crypto into mortgage financing than previous industry efforts.
The announcement follows a series of regulatory and industry signals pointing toward greater acceptance of digital assets in US housing finance. In June, the US Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to develop proposals recognizing cryptocurrency as a qualifying asset in mortgage risk assessments without requiring conversion to US dollars. Separately, lenders including Newrez and Rate have recently moved to incorporate crypto holdings into their underwriting processes.
Newrez announced on January 17 that it would allow borrowers to use Bitcoin, Ether, crypto exchange-traded funds, and stablecoins as qualifying assets in underwriting without requiring liquidation. Rate launched its RateFi program on February 23, permitting verified crypto holdings to count toward reserves and, in some cases, income, though borrowers must still convert crypto to cash for down payments and closing costs. The Coinbase and Better partnership goes a step further by using crypto-backed debt to directly fund the down payment itself.
Former Ohio Representative Tim Ryan, a member of Coinbase’s advisory council focused on middle-class affordability, spoke with Cointelegraph ahead of the rollout and framed the development as a practical use case for digital assets. Ryan argued that crypto can help address one of the most significant barriers to homeownership for everyday Americans. “Digital assets have a place for working-class people… all the way down to getting a home,” he said, adding that the industry’s move into the housing sector is “a really huge deal.”
Affordability continues to be a pressing concern for US homebuyers, with the average home price exceeding $405,000 in the fourth quarter despite sluggish market activity tied to low inventory and elevated mortgage rates. A 20% down payment on such a property would exceed $80,000, a threshold that has historically excluded many buyers. For crypto investors who have accumulated significant digital holdings, the new structure could offer an alternative path to homeownership without requiring them to exit their positions.
Originally reported by CoinTelegraph.
