Context: Responding to the Trump Administration’s Directive This innovation did not happen by chance. In June 2025, the Director of the Federal Housing Finance Agency (FHFA), Bill Pulte, ordered Fannie Mae and Freddie Mac to prepare proposals to integrate cryptocurrencies as assets in mortgage risk assessments. This move aligned with Donald Trump’s vision of making the United States the “crypto capital of the world.” Fannie Mae, one of the two major U.S. government-sponsored enterprises (GSEs), guarantees or holds nearly a quarter of all mortgages in the United States. Its approval turns this product into a “conforming” loan — offering the same protections, standards, and competitive rates as traditional mortgages. How the “Token-Backed Mortgage” Program Works The mechanism is simple and clever:
You get pre-qualified for a standard mortgage with Better (15- or 30-year term). Instead of paying a cash down payment, you pledge (use as collateral) a portion of your BTC or USDC from your Coinbase account. The assets are transferred to a custody wallet managed by Better, but you retain ownership. A separate private loan covers the down payment, while the main mortgage remains a standard Fannie Mae conforming loan.
Key Advantages:
No sale of crypto → no taxable capital gains event. No margin calls: Even if Bitcoin drops 50%, your monthly payments stay the same. No additional collateral required. Liquidation only after 60 days of missed payments (same as a traditional loan). For USDC: Rewards continue to accrue and can even offset part of the loan interest. Exclusive Rebate: Coinbase One members receive 1% of the loan value (up to $10,000) to cover closing costs.
Rates are slightly higher (0.5 to 1.5 percentage points above standard loans) but remain highly competitive given the tax benefits and asset retention. Who Can Benefit? The program targets the 52 million American adults who own cryptocurrencies (about 20% of the population). Key stats include:
67% of holders are under 45 years old. 26% earn less than $75,000 per year. Gen Z and Millennials are 2.5 times more likely to own crypto than Baby Boomers.
It’s an ideal solution for those who have built wealth in crypto but lack liquid cash for the typical 20% down payment. Reactions from Leaders Vishal Garg, CEO and Founder of Better: “Better was founded to make homeownership accessible to all Americans. This partnership with Coinbase opens a new path to achieving the American Dream for the 52 million digital asset holders.” Max Branzburg, Head of Consumer and Business Products at Coinbase: “The ability to turn digital wealth into homeownership is an exciting step in our mission to increase economic freedom. Many crypto holders have been unable to become homeowners until now.” Implications for the Housing and Crypto Markets This launch could unlock tens of billions of dollars in additional housing demand. Better estimates that accepting crypto as collateral could have generated $40 billion in extra loans in recent years. For the crypto industry, this represents massive institutional validation: America’s largest crypto exchange is partnering with one of the pillars of U.S. housing finance. It also paves the way for future expansion to other tokenized assets (stocks, bonds, tokenized real estate). Risks to Consider
Volatility: Although protected from margin calls, a prolonged Bitcoin decline could complicate future resale or refinancing. Higher Rates: The 0.5–1.5% premium increases the total cost of the loan. Tax Implications: Consult a tax advisor (pledging is not a sale, but rules are evolving). Availability: Currently in early access registration on better.com/crypto-backed-mortgages.
A New Era for Homeownership? Through this partnership, Coinbase, Better, and Fannie Mae are turning the American Dream into reality for a generation that grew up with Bitcoin rather than traditional savings accounts. This is more than a financial product — it’s a bridge between the new digital economy and the most important pillar of American wealth: real estate ownership. Early access registration is now open. The first loans are expected to close in the coming weeks. Do you hold BTC or USDC? Visit better.com/crypto-backed-mortgages to check your eligibility. The future of real estate is crypto. And it starts today. 🚀🏠
Published by Banx Network. This article is part of the Banx decentralized media programme, powered by the BXE token on the XRP Ledger.
