Leading US exchange Coinbase has partnered with Better Home & Finance (Better.com) mortgage lender, to launch cryptocurrency-backed mortgages.
Henceforth, home buyers can pledge their Bitcoin (at 250% collateral) or USDC (at 125%) as collateral for home loans without selling them (the tokens). This eliminates capital gains tax since there are no realized gains.
Additionally, these loans comply with the new Federal Housing Finance Agency (FHFA) standards, which make them eligible for lower interest rates than private cryptocurrency loans.
Notably, the loan terms and conditions remain unchanged amid crypto market volatility. While this introduces liquidation risk if the asset’s value falls below the threshold price, it provides home buyers with loan repayment stability.
The Coinbase announcement comes after a June 2025 directive from the FHFA ordering secondary mortgage lenders, Fannie Mae and Freddie Mac, to recognize digital assets as eligible collateral for the $18.5 trillion mortgage market.
The product addresses homeownership barriers, with the US median home sale price at about $429,000 as of February 2026. Meanwhile, the median age of first-time homebuyers was at an all-time high of 40 as of late 2025.
With the news, Better.com stock (Nasdaq: BETR) gained 5.41% in the day to a closing price of $33.12.
America’s largest bank, JPMorgan Chase, now allows a select group of clients to use Bitcoin and Ethereum as loan collateral through its Onyx blockchain platform.
BNY Mellon offers a similar service, providing crypto custody and loans simultaneously. Meanwhile, Wells Fargo and Bank of America take spot Bitcoin ETF shares as collateral.
The leading providers of crypto-backed loans in centralized finance include Nexo and Ledn, while in the decentralized space, the leading providers are Aave and Morpho.
Sygnum Bank, a Swiss cryptocurrency bank, provides credit solutions with digital assets or their hashrate as collateral.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Russia has banned direct peer-to-peer (P2P) cryptocurrency trading, as well as retail transfers to self-custody…
The US Office of the Comptroller of the Currency expects to publish its final rule…
The market-implied chance of Bitcoin reaching $100,000 before Christmas has fallen 2.8 percentage points in…
Algorand is making a case for a comeback, and the Algorand price prediction now has…
PYTH has broken out of a long-standing descending channel on the weekly chart, and the…
Zcash price prediction just got trickier. ZEC surged roughly 48% between September 15 and September…
