Key Takeaways
- Fannie Mae has introduced a groundbreaking program enabling homebuyers to use cryptocurrency as mortgage collateral through partnerships with Coinbase and Better Home & Finance.
- Homebuyers can use Bitcoin or USDC as pledged assets rather than liquidating their crypto holdings, helping them avoid capital gains tax implications.
- The financing model involves two separate loans: a traditional Fannie Mae-guaranteed mortgage and an additional crypto-collateralized loan for the down payment.
- Interest rates on the cryptocurrency-backed portion may exceed conventional mortgage rates by as much as 1.5 percentage points.
- This initiative stems from FHFA Director Bill Pulte’s June 2025 mandate directing Fannie Mae and Freddie Mac to integrate crypto assets into mortgage financing frameworks.
The government-backed mortgage behemoth Fannie Mae, which oversees $4.1 trillion in assets, is rolling out an innovative program that permits homebuyers to leverage cryptocurrency holdings as collateral rather than providing traditional cash down payments. This initiative was developed in collaboration with Coinbase and the digital mortgage provider Better Home & Finance.
Fannie Mae will soon accept crypto-backed mortgages, according to WSJ. Better and Coinbase are launching a product that lets buyers use bitcoin or USDC as collateral for a separate loan to cover the down payment, instead of selling crypto. pic.twitter.com/IEAawR8xHK
— Wall St Engine (@wallstengine) March 26, 2026
The concept is straightforward. Instead of liquidating digital currency holdings to generate down payment funds, prospective homeowners can pledge their crypto assets as security. This approach allows them to maintain their cryptocurrency positions while simultaneously securing home financing.
The financing mechanism operates through a dual-loan framework. One component is a conventional 15- or 30-year mortgage guaranteed by Fannie Mae. The other is a distinct loan secured by the pledged cryptocurrency, which provides the necessary down payment capital.
Currently, participants can pledge Bitcoin or USDC through this arrangement. After being pledged, these digital assets become locked and cannot be traded throughout the duration of the agreement.
Better’s CEO Vishal Garg emphasized that fluctuations in the pledged cryptocurrency’s value don’t impact the primary mortgage agreement, provided borrowers maintain regular payments. This feature eliminates a significant concern typically associated with crypto-backed lending products.
Understanding the Two-Loan Framework
This arrangement carries higher costs compared to conventional mortgages. Participants must pay interest charges on both loan components. The cryptocurrency-secured loan’s interest rate may align with standard Fannie Mae offerings or potentially increase by up to 1.5 percentage points above baseline rates.
Max Branzburg from Coinbase explained that numerous cryptocurrency investors have historically postponed home purchases to avoid liquidating their positions and incurring substantial capital gains tax liabilities. This financial product directly addresses that barrier.
Fannie Mae operates as a secondary market entity rather than a direct lender. The organization purchases mortgages from primary lenders, securitizes them, and provides payment guarantees to investors. Its involvement brings institutional legitimacy that previous crypto mortgage offerings from smaller companies couldn’t provide.
Precedents in Crypto-Backed Home Financing
Cryptocurrency-secured mortgages aren’t completely unprecedented. Miami-based financial technology firm Milo introduced a comparable offering in 2022. To date, the company has facilitated transactions for slightly more than 100 clients.
Josip Rupena, CEO of Milo, noted that many customers fit the profile of international buyers: individuals with substantial assets but minimal conventional credit histories in the United States. While it remains a specialized segment, demand has been steadily expanding.
Additionally, non-bank mortgage provider Newrez has begun accepting specific cryptocurrency holdings in mortgage qualification processes without mandating conversion to fiat currency. These developments signal increasing mainstream acceptance among lending institutions.
Regulatory Context and Market Data
This program emerged following a June 2025 directive from Bill Pulte, Director of the Federal Housing Finance Agency. He mandated that both Fannie Mae and Freddie Mac investigate methodologies for incorporating crypto assets into mortgage qualification standards.
Gallup research indicates that approximately 14% of American adults held cryptocurrency in 2025. Meanwhile, a Redfin study revealed that nearly 13% of younger homebuyers had already liquidated crypto assets to generate down payment funds.
Numerous operational details for Fannie Mae’s crypto-backed mortgage product remain under development. These include establishing collateral valuation methodologies and implementing appropriate risk management protocols for program participants.
