Coinbase and Better Expand Bitcoin-Collateral Mortgages Nationwide

Better Mortgage and Coinbase have made their token-backed conforming mortgage product generally available to eligible Coinbase One members across the United States. The offering lets qualified homebuyers pledge Bitcoin or USDC as collateral for a down payment without selling their digital assets or triggering ordinary margin calls from price swings.

The structure pairs a standard first-lien mortgage, designed to meet Federal National Mortgage Association guidelines, with a separate loan secured by the pledged cryptocurrency. Better originates and services both loans. Coinbase supplies the custody infrastructure through Coinbase Prime, where the collateral remains while the loans stay outstanding.

How the Dual-Loan Structure Works

Borrowers must still satisfy Better’s conventional underwriting standards for credit, income and other criteria. Instead of funding the full down payment in cash, they can pledge digital assets. Better requires the pledged Bitcoin to equal at least 250 percent of the down-payment loan amount. Collateral levels can vary with underwriting and individual circumstances.

In one illustrative case, a buyer of a $500,000 home might pledge $250,000 worth of Bitcoin to support a $100,000 down-payment loan. The pledged assets stay in custody and are not liquidated solely because of routine market volatility. One description of the terms notes that liquidation becomes possible only after a borrower falls 60 days delinquent on payments.

The product first appeared in March 2026, initially supporting Bitcoin and USDC. The companies funded the first such mortgage in June for a married couple in Michigan who used Bitcoin holdings rather than cash for their down payment. The broader rollout to Coinbase One members took effect on August 12.

Incentive for Coinbase One Members

Eligible Coinbase One customers approved for qualifying Better products receive a lender-funded credit equal to 1 percent of the mortgage value, capped at $10,000. The credit applies to closing costs and extends beyond the token-backed product to standard mortgages, home-equity lines of credit and refinances. Better pays the credit, which appears on the borrower’s closing disclosure.

Better executives pointed to the median age of first-time homebuyers reaching 40 in 2025, driven by elevated interest rates, high home prices and limited inventory. The product targets younger buyers who hold meaningful crypto wealth and prefer not to liquidate positions that could generate capital-gains tax events.

Wider Context for Crypto-Collateral Lending

Crypto-backed mortgages remain a specialized segment of the housing-finance market. Other lenders have reported rising activity. Milo, a crypto-focused firm, said earlier this year it had surpassed $100 million in digital-asset mortgages, including a single loan of $12 million. Ledn, another platform active in the space, has projected that the overall digital-asset-backed loan market could grow from roughly $3 billion today to $1 trillion over the next decade.

Borrowers remain responsible for repayments on both the conventional mortgage and the separate collateralized loan. The arrangement keeps the first lien structured as a standard conforming product while the crypto component addresses the down-payment requirement for those whose assets sit largely onchain.

The companies directed interested consumers to check eligibility through Better’s dedicated crypto-backed mortgage page. Availability is limited to U.S. residents with verified Coinbase accounts who meet the lender’s full underwriting criteria.