Better Mortgage is opening a national runway for crypto-collateralized home loans — and the company already has a waitlist. The lender’s new product will accept Bitcoin and USDC as collateral, is slated to roll out nationwide this summer, and — based on current signups — is projecting roughly $250 million in loan volume.
Key mechanics and partners
- Better is partnering with Coinbase to power the crypto side of the service. Borrowers with sizable Bitcoin holdings are routed through Coinbase’s product interface, where they complete the mortgage application, receive approval, and then authorize a one-click transfer of their crypto into a custodial wallet, Coinbase product director Roy Zhang said.
- Better will originate and service the loans; Coinbase supplies the underlying digital-asset infrastructure and custody.
A first-of-its-kind mortgage
- The arrangement recently produced what Coinbase called the first-ever Fannie Mae–insured mortgage backed by Bitcoin in the U.S. The inaugural loan went to a couple in Ann Arbor, Michigan (identified only as Joe and Amy). Joe said the couple felt reassured that their Bitcoin remained secured in custody rather than being sold to fund the down payment.
Why Fannie Mae matters
- What sets this product apart from earlier crypto-collateral lending pilots is Fannie Mae’s involvement. In March, the government-sponsored enterprise announced it would accept crypto for mortgage down payments; here it provided the conforming guarantee that lets the loan behave like a standard, conforming mortgage.
- Better CEO Vishal Garg emphasized the significance: the guarantee amounts to a U.S. government-sponsored enterprise accepting digital assets in lieu of cash held in a bank account as collateral.
Collateral structure and future plans
- Unlike margin-style crypto loans, the pledged Bitcoin and USDC are not subject to automatic liquidation under this structure. The collateral stays in custody for the life of the loan and is not sold off if its value drops.
- Better expects to expand the product over time beyond Bitcoin and USDC to additional digital assets, including tokenized stocks.
Timing and outlook
- Better and Coinbase say the product will be available nationwide before the end of the summer, with Better handling loan servicing and Coinbase managing custody and transaction plumbing. Early demand is already driving the $250 million loan-volume projection tied to the waitlist.
This rollout marks a notable step in bringing mainstream mortgage finance and regulated crypto infrastructure closer together — with Fannie Mae’s guarantee and custodial mechanics aimed at reducing the volatility and counterparty concerns that sank earlier experiments.
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