Coinbase and Better.com Unveil Crypto-Backed Mortgages

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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.

Coinbase enters $18.5 trillion mortgage market

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.

Source: MarketWatch

The rise in crypto-backed debt providers

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.