Mortgage company Better, in partnership with Coinbase exchange and backed by Fannie Mae, has launched the first mortgage program backed by digital assets in the U.S. market. The initiative, announced on March 26, 2026, will allow homebuyers to use Bitcoin (BTC) or USDC stablecoins as collateral to cover down payments without liquidating their holdings.
These loans, which operate under the guidelines of Fannie Mae, the U.S. government-backed company that guarantees liquidity in the mortgage market, are classified as “conforming loans.” This means that Bitcoin and USDC users will be able to enjoy the same interest rates as traditional loans.
The mechanism designed by Better and Coinbase aims to solve one of the main obstacles for digital asset investors: the need to sell assets and pay capital gains taxes to get the cash needed for a home.
According to the official statement, This process works by pledging (or pledging) your assets through Coinbase Custody.. Users do not sell their Bitcoins. Instead, lock them up as collateral. This allows you to:
- Avoid tax events. Since there is no sale, there is no immediate tax liability.
- Maintaining market exposure: Owner retains the asset and benefits from future revaluations.
- Cash Substitute: The value of the token serves as a substitute for the initial cash payment required by banking standards.
Better CEO Vishal Garg said the goal is to “democratize homeownership” for the roughly 52 million Americans who own digital assets, who often encounter barriers in the traditional financial system.
No risk of liquidation due to volatility
One of the most disruptive features of this product is its protection against market fluctuations. Unlike other crypto-backed loans, this program does not include margin calls (margin call) Also, it will not ask for additional capital even if the price of Bitcoin falls.
“Even if the value of Bitcoin falls, the terms of the mortgage will not change. “Market movements alone will not cause a liquidation,” the company explains.
The only situation in which collateral is at risk of liquidation is if the borrower suffers some loss. 60 days payment delaythe rules are in line with the standard protocol for conventional mortgages in the United States.
Additionally, the program provides additional incentives for those who use the USDC stablecoin. In other words, you are compensated by the funds pledged (yield) can be used to offset your monthly mortgage payment, lowering your effective interest rate.
Fannie Mae’s role in this release
Integration with Fannie Mae is key to long-term survival of this model. By following regulations, Better can securitize these mortgages and sell them on the secondary market, ensuring a continued flow of funds for new loans.
This openness reflects demographic realities. According to data maintained by Coinbase, 45% of young investors in the US own cryptocurrencies, compared to 18% of older generation investors. For this group of people whose wealth is concentrated in assets On-chaintraditional credit channels have been outdated until now.
Early access registration is currently available on Better’s website, with plans to expand accepted assets to tokenized stocks and other digital financial instruments in the future.
As reported by CriptoNoticias, development of this type of financial product has been underway in the United States since at least June last year.
At the time, William J. Pulte, director of the Federal Housing Finance Agency (FHFA), announced that the agency would evaluate the potential use of virtual currency holdings when reviewing the eligibility of mortgage loan applicants.
(Tag translation) Bitcoin (BTC)
