Coinbase has given American homebuyers a novel way to utilize their Bitcoin without having to sell it. In partnership with lender Better, the cryptocurrency exchange is now offering Bitcoin-backed mortgages to eligible Coinbase One customers. The arrangement allows buyers to pledge Bitcoin as security while financing a property through a framework that combines a standard Fannie Mae mortgage with a separate loan for the down payment, opening up a new path to homeownership for cryptocurrency investors.

Coinbase Brings Bitcoin Into the Homebuying Process

Members of Coinbase One who wish to use their Bitcoin holdings to purchase a property while keeping the asset are the target audience for the new mortgage option. Under the Coinbase and Better agreement, borrowers can pledge Bitcoin as collateral in lieu of selling it to cover the down payment.

According to the plan, buyers must use Bitcoin as collateral that is at least 250% of the down payment. Borrowers are able to maintain their Bitcoin exposure for the duration of the loan because the BTC is kept in custody until the mortgage is paid back or refinanced.

For borrowers who have amassed significant Bitcoin holdings but do not wish to sell them in order to obtain the funds required for a home purchase, this arrangement is especially crucial.

Crypto-backed mortgages have moved in.

Borrowers in the US can now use Bitcoin as collateral for a down payment - without having to sell it or face margin calls.

Plus, Coinbase One members can get up to $10,000 back at closing. pic.twitter.com/wMroUwVahX

— Coinbase 🛡️ (@coinbase) August 26, 2026

How the Bitcoin-Backed Mortgage Works

There are two distinct components to the funding framework. The down payment is covered by a different loan, and the primary home loan is a typical Fannie Mae mortgage. Instead of being sold to raise money, Bitcoin is used as collateral for that down payment financing.

According to Coinbase, the arrangement is intended to prevent forced selling based only on daily fluctuations in the price of Bitcoin. As a result, borrowers do not always have to deal with margin calls when Bitcoin swings significantly in either direction.

Until the underlying debt is paid back or refinanced, the Bitcoin is kept in custody. Instead of having to actively manage the Bitcoin position as market values fluctuate, this provides the borrower with a clear path for eventually releasing the collateral.

Missed Payments, Not Daily Bitcoin Swings, Trigger Liquidation

The arrangement's ability to manage the volatility of Bitcoin is among its most noteworthy aspects. Because Bitcoin is being used as security, its value may fluctuate significantly while the mortgage is outstanding. But those normal market fluctuations don't always mean liquidation.

Only after 60 days of unpaid invoices does liquidation take place under the structure. In other words, a brief drop in the price of Bitcoin does not automatically compel the borrower to sell the pledged BTC.

This distinction may be important to cryptocurrency owners. Instead of turning the asset into dollars before buying the home, they can keep ownership of their Bitcoin exposure and use its value to finance the down payment loan.

Early Demand Signals More Than $260 Million in Volume

In June, a couple in Michigan became the first borrowers to close utilizing the Bitcoin-backed framework in an earlier test that resulted in the first completed loan.

Since then, early demand has reached over $260 million in volume, indicating that American cryptocurrency investors who want to link their riches in digital assets with conventional home financing are already showing significant interest.

The offering expands Bitcoin's use beyond trading and investment into a significant real-world buy for Coinbase. It makes it possible for qualified Coinbase One members to obtain home finance without having to give up their Bitcoin holdings right away.

While the Fannie Mae mortgage maintains the fundamental home loan within a traditional U.S. mortgage framework, the cooperation with Better merges Coinbase's cryptocurrency infrastructure with an established mortgage-lending procedure. As a result, a financing model was created especially for borrowers who wish to use their Bitcoin while preserving the asset.

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