Coinbase Launches First Crypto-Backed Conforming Mortgage in the USA

Coinbase and Better House & Finance have introduced the first crypto-backed conforming mortgage in the United States. The new product allows borrowers to use Bitcoin (BTC) or USDC as collateral for a Fannie Mae-backed home loan without selling their holdings. Unlike traditional crypto lending, this offer integrates directly into the $12 trillion U.S mortgage market, operating under the same federal framework that supports the majority of home purchases. 

However, the structure requires significant overcollateralization. Bitcoin is valued at just 40% of its market price, while USDC is recognized at 80%. For example, a borrower must pledge $200,000 in Bitcoin to generate $80,000 in usable downpayment credit. 

High Collateral Requirements

The loan combines a traditional mortgage with a second loan secured by crypto assets held in custody by Coinbase. Borrowers retain ownership of their crypto, but it remains locked for the loan’s duration. More importantly, the framework avoids margin calls, saving borrowers from short-term market volatility. The crypto position becomes actionable for the lender only after 60 or more days of delinquency, aligning with the standard foreclosure timelines. 

The initiative follows guidance from the Federal Housing Finance Agency, which is currently reviewing broader digital asset underwriting standards. Further expansion is expected within the next year.