Better Mortgage has opened a waitlist for a new mortgage product that lets borrowers use Bitcoin and USDC as collateral — and it plans a nationwide launch this summer. The lender says early signups point to roughly $250 million in potential loan volume so far, and it’s partnering with Coinbase to handle the crypto side of the transactions.
How it works
- Borrowers with sizable Bitcoin holdings link to Better through Coinbase’s interface, complete the mortgage application and approval process, then authorize their crypto to be moved into a custodial wallet with a single click, Roy Zhang, Coinbase’s director of product, said. Coinbase will manage the underlying digital-asset infrastructure while Better originates and services the loans.
A milestone: Fannie Mae backing
- What makes this product notable is Fannie Mae’s involvement. Coinbase called the first funded loan “the first-ever Fannie Mae-insured mortgage backed by BTC in the U.S.” Better originated and serviced that first mortgage, which went to a couple in Ann Arbor, Michigan, identified only as Joe and Amy.
- The government-sponsored enterprise’s conforming guarantee is pivotal because it makes the mortgage a standard, marketable loan rather than an off‑book exotic product. Fannie Mae had already signaled openness to crypto for down payments in March; this program extends that acceptance into collateral for a conforming mortgage.
Custody, not liquidation
- Unlike many crypto-backed loans that carry liquidation risk, this product keeps pledged Bitcoin and USDC in custody for the life of the loan. That means the assets aren’t automatically sold if their price falls — an important distinction that, according to borrower Joe, gave him confidence the couple’s Bitcoin wouldn’t be sold to cover a down payment.
Roadmap and expansion
- Better founder and CEO Vishal Garg framed the Fannie Mae backing as “significant,” calling it a government-sponsored enterprise accepting digital assets in place of cash held in a bank account as collateral. He said the offering is expected to expand beyond Bitcoin and USDC to include other digital assets over time, including tokenized stocks.
Timing and roles
- Coinbase announced the milestone on X and said the full rollout is expected before the end of summer. Better will handle loan origination and servicing; Coinbase will power the custody and product interface that connects borrowers’ crypto to the mortgage process.
The program represents one of the most concrete moves yet to bridge traditional mortgage markets and crypto collateral — combining a large retail lender, a major exchange, and Fannie Mae’s conforming guarantee to bring crypto into mainstream home lending without immediate forced liquidations.
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