Coinbase and Better enable a conventional mortgage using Bitcoin as collateral without requiring asset liquidation.
A Michigan couple secured the first Fannie Mae-backed mortgage using Bitcoin as collateral, Coinbase announced. The loan, facilitated by mortgage lender Better, allows borrowers to pledge crypto assets without selling them, leveraging government-backed guarantees.
The product follows a policy shift by the FHFA, which now recognizes crypto held on centralized exchanges. Initially supporting Bitcoin and Circle’s USDC stablecoin, the offering aims to expand nationwide in the coming months. Market volatility will not trigger margin calls or liquidations, according to Better.
Coinbase stated the initiative provides a pathway for crypto holders to access homeownership while retaining their digital assets. The move reflects growing institutional acceptance of cryptocurrency as collateral in traditional finance.