Coinbase to launch token-backed mortgage down payments by summer 2026

Cryptocurrency exchange Coinbase will let qualified borrowers pledge digital assets to fund Fannie Mae-backed mortgages beginning this summer.

In a Thursday notice, Coinbase and its partner, Better Home & Finance, said the mortgage structure launching "by summer 2026" will initially let borrowers use Bitcoin (BTC) or USDC (USDC) as collateral for loans to cover down payments on homes.

The initiative, first announced in March, marks a notable step toward letting digital assets finance houses. Source: Pavel Danilyuk on Pexels

"We're excited to expand access to all qualified borrowers to fix an ongoing issue: buyers who qualify on every measure that matters but cannot clear the down payment hurdle because their wealth isn't where the system expects to find it," said Better founder and CEO Vishal Garg.

Garg said in a March post on X: "This isn't a niche thing. It's what everyone is going to do once most financial assets are tokenized. It's just a better way to buy a house."

The move by Coinbase and Better follows US regulatory agencies under the Trump administration taking a friendlier stance toward crypto companies and showing more openness to digital assets integrating with traditional finance.

In June 2025, the US Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to consider crypto as an asset in mortgage risk assessments without requiring conversion into fiat.

Related: Crypto mortgages in US face valuation risks, regulatory uncertainty

Other mortgage lenders have made similar moves since the FHFA order. In February, Newrez began allowing borrowers to use their cryptocurrency holdings to qualify for a mortgage application.

Volatile crypto-backed mortgages scrutinized for political motivations

Although the price volatility of cryptocurrencies like Bitcoin may present challenges to the mortgage plan — a feature long discussed in crypto circles — some US lawmakers have accused FHFA head Bill Pulte of being "unduly influenced" by President Donald Trump in supporting such policies.

"Expanding underwriting criteria to include the consideration of unconverted cryptocurrency assets could pose risks to the stability of the housing market and the financial system," said five US senators in a July 2025 letter to Pulte following the FHFA order.

Republican lawmakers, including crypto proponent Cynthia Lummis, have proposed codifying the FHFA order into law. She introduced the 21st Century Mortgage Act in July 2025, saying government agencies "must evolve to meet the needs of a modern, forward-thinking generation."

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