Better Mortgage, the online home finance platform, and leading crypto exchange Coinbase have officially launched their Bitcoin-backed mortgages for general availability to US residents. Announced on Wednesday, August 26, 2026, this product allows homebuyers to leverage their digital assets, including Bitcoin (BTC) and USD Coin (USDC), as collateral for a down payment without selling them.
This initiative offers a novel pathway to homeownership, directly addressing a growing challenge in the US housing market where high interest rates and record home prices have made traditional down payments a significant hurdle. It enables crypto investors to preserve their long-term positions while still accessing the capital needed to purchase a home.
Bitcoin-backed mortgages expand home financing options
The new offering is structured as a “token-backed, conforming mortgage,” meticulously designed in accordance with Fannie Mae guidelines. It comprises two distinct loans: a standard home loan backed by Fannie Mae and a separate down payment loan. This second loan is specifically secured by the borrower’s pledged cryptocurrency.
Customers can pledge either Bitcoin (BTC) or USD Coin (USDC), transferring these digital assets to Better’s custodial account on Coinbase Prime. Both the standard home loan and the down payment loan share the same interest rate and amortization term, allowing for a single monthly repayment. This approach underscores Bitcoin’s growing role in traditional finance, even amid its characteristic price volatility.
How Bitcoin collateral for mortgages works
A central feature of these Bitcoin-backed mortgages is their collateral requirement. Borrowers must pledge BTC worth at least 250% of their down payment loan amount. For those using USDC, the collateral ratio is 125% of the loan.
Crucially, the product avoids margin calls based solely on Bitcoin price declines. This design provides borrowers with stability, as their mortgage terms won’t change due to market volatility of their pledged assets. However, Better Mortgage can liquidate the pledged BTC if a borrower becomes 60 days delinquent on payments, securing the loan for the lender.
Borrowers retain full market upside on their pledged digital assets throughout the loan’s repayment period. Any gains in the value of their Bitcoin or USDC during the mortgage term remain entirely theirs. Once the mortgage is fully repaid or refinanced, the pledged crypto is returned, subject to the specific loan terms.
Eligibility and incentives for digital asset holders
To qualify for these loans, applicants must be US residents with a verified Coinbase account. They also need to meet Better Mortgage’s standard credit, income, and other underwriting requirements. These loans generally feature interest rates 0.5% to 1.5% higher than conventional 30-year fixed mortgages, compensating for the absence of margin calls.
Coinbase One members receive an added incentive designed to ease the financial burden of homebuying. Eligible members get a 1% rebate of the mortgage value, capped at $10,000, applied as a lender credit against closing costs. This rebate also extends across Better Mortgage’s other home-financing products for members, including standard mortgages, Home Equity Lines of Credit (HELOCs), and refinances.
Broadening access to homeownership
This program aims to expand homeownership access, particularly for a generation whose wealth increasingly lives on-chain. Ziggy Jonsson, Chief Technology Officer at Better Mortgage, highlighted significant market pressures. He noted that high interest rates, record home prices, and limited inventory pushed the median age of a first-time homebuyer to 40 in 2025.
Jonsson emphasized how allowing Coinbase One members to pledge crypto without selling opens a new path toward homeownership. Ben Shen, Head of Financial Services and Loyalty Products at Coinbase, echoed this sentiment. He stated that the product makes crypto “more useful and powerful in the real-world,” expanding homeownership pathways while preserving long-term investment positions.
This initiative comes as the broader financial sector continues to observe crypto market interest.
The demand for such innovative solutions is evident from early indicators. An initial waitlist for the product generated over $260 million in projected loan volume. Reports indicate that 76% of early interested parties were Coinbase One users, with 60% planning a home purchase within six months.
This product taps into a significant demographic, as 41% of Better Mortgage’s pre-approved customers qualify on income and credit but lack the cash for a traditional down payment. It could be a vital step for many toward owning a home.
The first couple to close on a token-backed mortgage in June 2026, Joe and Amy from Michigan, exemplified the product’s utility. Joe noted that buying their first home had “always been the goal,” but he wasn’t willing to give up “a decade of investing to get there.”
He emphasized that this mortgage allowed him to secure their home while retaining his Bitcoin investment, eliminating the need to choose between the two. For many, this product provides a way to maintain exposure to Bitcoin’s market cycles while achieving a key life goal.