Fannie Mae and Coinbase Pave the Way for Crypto-Backed Mortgages – Here’s How

TLDR

• Fannie Mae will permit down payments for mortgages to be backed by cryptocurrency via a new initiative developed with Coinbase and Better Home & Finance.
• Purchasers can use Bitcoin or USDC as collateral rather than liquidating their crypto holdings, which helps them steer clear of potential capital gains taxes.
• The arrangement involves two separate loans: a conventional mortgage guaranteed by Fannie Mae and an additional loan secured by cryptocurrency.
• Interest rates on the cryptocurrency-secured loan could be as much as 1.5 percentage points above those of traditional mortgages.
• This development comes after FHFA Director Bill Pulte issued instructions in June 2025 for Fannie Mae and Freddie Mac to get ready to accept cryptocurrency as a mortgage asset.

(SeaPRwire) –   Fannie Mae, a government-sponsored enterprise managing $4.1 trillion in mortgages, is getting ready to support home loans where purchasers utilize digital currency as collateral in place of cash for down payments. The initiative was created in partnership with Coinbase and the mortgage provider Better Home & Finance.

Fannie Mae will soon accept crypto-backed mortgages, according to WSJ. Better and Coinbase are launching a product that lets buyers use bitcoin or USDC as collateral for a separate loan to cover the down payment, instead of selling crypto. pic.twitter.com/IEAawR8xHK

— Wall St Engine (@wallstengine) March 26, 2026

The concept is straightforward. Instead of selling off cryptocurrency to generate funds for a down payment, homebuyers can pledge their digital assets as security. This approach allows them to retain their investments while becoming eligible for a mortgage.

The system operates through dual loans. One is a typical 15- or 30-year mortgage supported by Fannie Mae. The other is an independent loan collateralized by the pledged cryptocurrency, which covers the down payment.

Under this program, borrowers can currently use Bitcoin or USDC as pledged assets. These digital holdings become locked and cannot be traded throughout the duration of the agreement.

Vishal Garg, CEO of Better, verified that declines in the value of pledged cryptocurrency won’t impact the mortgage provided that borrowers continue making their payments. This eliminates a major risk associated with crypto-backed lending.

How the Dual-Loan Structure Works

This configuration is more expensive than a conventional mortgage. Borrowers must pay interest on both loans. The interest rate on the crypto-secured loan may be comparable to standard Fannie Mae rates, or it could exceed them by up to 1.5 percentage points.

Max Branzburg from Coinbase noted that numerous cryptocurrency investors had previously shied away from purchasing homes because they wished to avoid selling their assets and incurring capital gains taxes. This new offering seeks to address that issue.

Fannie Mae doesn’t originate loans directly. Instead, it purchases mortgages from lenders, bundles them, and guarantees payments to investors. Its support lends legitimacy that previous cryptocurrency mortgage offerings from smaller institutions were missing.

Who Has Done This Before

Mortgages secured by cryptocurrency aren’t completely novel. Milo, a Miami-based fintech firm, introduced a comparable product in 2022. To date, it has served slightly more than 100 clients.

Josip Rupena, CEO of Milo, indicated that many of his customers resemble international purchasers: they possess substantial assets but have restricted conventional credit histories. This represents a specialized market segment that has been expanding.

Newrez, a non-bank lender, has also begun to accept specific cryptocurrency holdings as part of mortgage applications without mandating their conversion to cash. These developments suggest that more established lenders are beginning to follow this trend.

Policy Background

This initiative follows a June 2025 directive from Bill Pulte, Director of the Federal Housing Finance Agency. He directed both Fannie Mae and Freddie Mac to investigate ways that crypto assets could be incorporated into mortgage applications.

According to Gallup, approximately 14% of American adults held cryptocurrency in 2025. A Redfin survey revealed that nearly 13% of younger homebuyers had already sold digital currency to finance a down payment.

Important specifics for the Fannie Mae offering are still under development. These details encompass how collateral valuations will be determined and what risk management measures will be implemented for the program.