Coinbase, Fannie Mae to Enable Crypto-Backed Mortgages
Fannie Mae will now accept cryptocurrency-backed mortgages, permitting homebuyers to use Bitcoin or the USDC stablecoin as collateral for down payments via a partnership between Coinbase and Better Home & Finance. Borrowers move digital assets from Coinbase to a Better custody wallet, retaining ownership and avoiding taxable events from crypto sales. USDC holders can still earn rewards on their collateral. Mortgage rates will be 0.5 to 1.5 percentage points above standard 30-year loans. These loans do not have margin calls, so a crypto price drop does not require more collateral; liquidation occurs only after a 60-day payment default, following conventional mortgage practices. The move follows regulatory and industry steps to incorporate crypto assets in mortgage qualifications, with major lenders exploring similar adoption.
