Coinbase and Nasdaq-listed Better Mortgage have made Bitcoin-backed mortgages generally available to Americans, following a debut loan funded in June. Coinbase One members can now pledge Bitcoin or USDC as collateral for a down payment instead of selling it, and qualifying members get up to $10,000 in closing-cost credits.
Coinbase and Better Mortgage announced the general availability of Bitcoin-backed mortgages for US homebuyers. The exchange and lender said the service was designed in accordance with Fannie Mae, the Federal National Mortgage Association.
How the dual-loan structure works
The product pairs a standard Fannie Mae-conforming mortgage with a secondary loan backed by Bitcoin or USDC held in Coinbase custody. That second loan covers the down payment, so buyers avoid selling their crypto and triggering a taxable event. There are no margin calls from price drops — collateral liquidation only enters the picture if a borrower misses mortgage payments for 60 days. Rates on these loans run about 0.5% to 1.5% above standard conforming mortgage rates, depending on the borrower's profile.
From a single loan to general availability
Better and Coinbase funded the first Bitcoin-backed mortgage in June, when a married Michigan couple, Joe and Amy, used their Bitcoin holdings as collateral for a down payment rather than liquidating their position. Coinbase One members who qualify for the program are now eligible for a rebate equal to 1% of the mortgage value, up to $10,000. Ben Shen, head of financial services and loyalty products at Coinbase, said the product is meant to allow crypto holders to preserve long-term investment positions while expanding pathways to homeownership; he added that "we are allowing crypto to be more useful and powerful in the real-world".
A niche but growing lending market
Bitcoin-backed loans remain a small slice of the mortgage market. Crypto-backed lender Milo said earlier this year that it had surpassed $100 million in digital asset mortgages, including a record $12 million loan. Ledn, one of the largest lenders in the space, has published research claiming the market could grow from its current $3 billion size to $1 trillion over the next 10 years.
Sources: Bitcoin Magazine, Crypto Briefing
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