Better Home & Finance and Coinbase recently announced (March 26-27, 2026) the first Fannie Mae-conforming "token-backed" mortgage product that lets homebuyers use cryptocurrency as collateral without selling it.
In this two-loan structure:
Borrowers apply for a standard 15- or 30-year conforming mortgage on the home through Better (Fannie Mae-backed).
They simultaneously take out a separate loan (secured by their Bitcoin or USDC holdings held in custody at Coinbase) to cover the down payment.
This allows crypto holders (especially younger investors) to access homeownership while keeping their digital assets and avoiding immediate capital gains taxes from selling. Only BTC and USDC are accepted as collateral. The main mortgage functions like a conventional loan; the crypto-backed portion is separate.
The product is expected to roll out within the next three months (from the announcement date). It builds on a 2025 FHFA policy shift that enabled Fannie Mae to treat certain tokenized assets more like traditional reserves or collateral in underwriting.
Note that this is the first such mainstream, GSE-backed offering, though some non-conforming crypto mortgage options existed earlier (e.g., from specialized lenders). Details like exact LTV ratios, interest rates on the crypto loan, and risk handling (e.g., in case of significant crypto price drops) are still being finalized by the partners.
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