Coinbase and Better Mortgage have closed what they describe as the first conventional mortgage in the United States backed by Bitcoin collateral and insured by Fannie Mae, a milestone that marks a formal convergence between digital assets and the nation's federally backed housing finance system.

The mortgage was issued to a couple from Ann Arbor, Michigan, who were able to pledge their Bitcoin holdings through a Coinbase custodial wallet rather than liquidating the assets to fund a down payment. The transaction was completed digitally through Better's lending platform, with Coinbase providing the infrastructure to secure the collateral.

Bitcoin Pledged Without Being Sold

Under the structure, approved borrowers transfer their Bitcoin into a Coinbase custodial wallet, where the assets serve as collateral for the duration of the loan. Borrowers retain exposure to Bitcoin price movements throughout the mortgage term without needing to convert their holdings into fiat currency.

Roy Zhang, Coinbase's director of product, described the application process as fully digital. Borrowers complete their application through Better's platform, receive approval, and connect their Coinbase account to transfer funds into custody with a single step.

Fannie Mae Acceptance Is the Defining Factor

The critical element of this transaction is Fannie Mae's involvement. The government-sponsored enterprise announced in March 2026 that it would begin accepting cryptocurrency assets in mortgage down payment evaluations. Better's chief executive Vishal Garg confirmed that this mortgage satisfies Fannie Mae's conforming loan underwriting standards, meaning the product operates within the existing regulatory framework rather than outside it.

Garg noted that Fannie Mae's acceptance signals formal recognition of digital assets as eligible collateral alongside traditional forms of wealth. He also indicated that tokenized mortgages could eventually incorporate additional asset types, including tokenized equities.

Nationwide Rollout and Growing Demand

Better Mortgage has already opened a waitlist ahead of a broader national launch planned for this summer. The lender estimates a loan volume of approximately $250 million based on current waitlist data, indicating significant pent-up demand among borrowers who hold substantial crypto wealth but face barriers under traditional mortgage underwriting criteria.

The development follows the US Federal Housing Finance Agency's June 2025 directive to Fannie Mae and Freddie Mac to consider cryptocurrency as an eligible asset in mortgage risk assessments without requiring conversion to fiat currency. Several other mortgage lenders have since introduced similar programs, with Newrez beginning to accept crypto assets for mortgage applications in February.

Political Context and Regulatory Debate

The product launched against a backdrop of intensifying regulatory debate in Washington. Five US senators wrote to FHFA director Bill Pulte in July 2025, warning that accepting unconverted cryptocurrency assets could pose risks to housing market stability. Some lawmakers have accused Pulte of being unduly influenced by the White House in supporting these policies.

Republican lawmakers, including Senator Cynthia Lummis, have moved in the opposite direction by seeking to codify the FHFA directive into law. Lummis introduced the 21st Century Mortgage Act in July 2025, arguing that government agencies must evolve to recognize the financial habits of a new generation of wealth holders who keep assets in digital form.