Key Points
- A groundbreaking initiative from Fannie Mae enables cryptocurrency to serve as collateral for mortgage down payments in partnership with Coinbase and Better Home & Finance.
- Homebuyers can use Bitcoin or USDC as pledged assets without liquidating their positions, eliminating capital gains tax concerns.
- The financing arrangement consists of two separate loans: a conventional Fannie Mae mortgage combined with a crypto-collateralized loan component.
- Interest rates for the crypto-backed portion can exceed traditional mortgage rates by as much as 1.5 percentage points.
- This initiative stems from a June 2025 order by FHFA Director Bill Pulte directing Fannie Mae and Freddie Mac to integrate cryptocurrency into mortgage lending frameworks.
Fannie Mae, the government-backed mortgage entity managing $4.1 trillion in assets, is launching a program that accepts cryptocurrency as collateral for home purchases. This innovative financing solution was developed in collaboration with Coinbase and 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 assets to generate cash for a down payment, prospective homeowners can pledge their cryptocurrency holdings as security. This approach allows them to maintain their crypto positions while accessing home financing.
The financing mechanism operates through a dual-loan system. 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 funds for the down payment.
Currently, the program accepts Bitcoin and USDC as eligible collateral. After being pledged, these digital assets remain locked and unavailable for trading throughout the loan term.
Better CEO Vishal Garg stated that market fluctuations affecting the pledged cryptocurrency don’t impact the mortgage itself, provided borrowers maintain regular payments. This feature addresses a significant concern typically associated with crypto-backed lending products.
Understanding the Two-Loan Financing Model
This arrangement comes with additional costs compared to conventional mortgages. Borrowers must service interest payments on both loan components. The cryptocurrency-backed portion may carry interest rates matching standard Fannie Mae offerings, or alternatively, rates elevated by up to 1.5 percentage points.
Max Branzburg from Coinbase noted that numerous cryptocurrency investors have previously hesitated to purchase homes due to concerns about liquidating holdings and incurring substantial capital gains tax liabilities. This financial product directly addresses that barrier.
Fannie Mae functions as a secondary market participant rather than a direct lender. It purchases mortgages from originating lenders, securitizes them, and provides payment guarantees to investors. Its involvement brings institutional legitimacy that previous crypto mortgage offerings from smaller providers couldn’t match.
Earlier Attempts in the Market
Cryptocurrency-backed home financing isn’t completely unprecedented. Miami-based fintech firm Milo introduced a comparable offering in 2022. To date, the company has facilitated transactions for slightly more than 100 clients.
Milo CEO Josip Rupena observed that many customers fit a specific profile: international buyers with substantial assets but minimal conventional credit histories. While niche, this market segment has demonstrated consistent growth.
Non-bank mortgage provider Newrez has similarly begun accepting specific cryptocurrency holdings in mortgage evaluations without mandating conversion to traditional currency. These developments signal increasing mainstream acceptance among lenders.
Regulatory Framework
This program emerged following guidance issued in June 2025 by Federal Housing Finance Agency Director Bill Pulte. His directive required both Fannie Mae and Freddie Mac to investigate methods for incorporating cryptocurrency assets into mortgage qualification processes.
Gallup data from 2025 indicates that approximately 14% of American adults held cryptocurrency. Meanwhile, a Redfin study revealed that nearly 13% of younger homebuyers had already liquidated crypto holdings to fund down payments.
Critical implementation specifics for the Fannie Mae program remain under development. These include methodologies for determining collateral valuations and establishing appropriate risk management protocols for program participants.
