Coinbase launches crypto-backed mortgages with Better, offers $10K support for closing costs

Coinbase and Better Home & Finance Holding Company have rolled out a mortgage product that lets homebuyers use their crypto as collateral for a down payment, without actually selling it. The product, now available to eligible Coinbase One members as of mid-August 2026, pairs a standard Fannie Mae-conforming mortgage with a secondary loan backed by Bitcoin or USDC held in Coinbase custody.

Coinbase One members who qualify also get up to $10,000 in lender credits toward closing costs. That’s a 1% credit on the mortgage amount, capped at $10K.

How the dual-loan structure works

A borrower takes out a traditional conforming mortgage through Better for the bulk of the home purchase. Separately, they secure a second loan collateralized by their crypto holdings deposited with Coinbase. That second loan covers the down payment, meaning the buyer never has to convert their digital assets to cash.

Selling crypto to fund a down payment triggers capital gains taxes. By borrowing against crypto instead, buyers preserve their position and avoid that tax event.

The product also comes with a notable safety net: there are no margin calls triggered by crypto price drops. The only scenario where collateral liquidation enters the picture is if a borrower misses mortgage payments for 60 days.

Rates on these loans run about 0.5% to 1.5% above standard conforming mortgage rates, depending on the borrower’s profile.

From waitlist to general availability

The partnership between Coinbase and Better was first announced on March 26, 2026. The first token-backed mortgage actually funded on June 4, 2026, when a couple in Michigan closed on what became the first Fannie Mae-backed loan of its kind.

A waitlist attracted significant interest ahead of general availability. Roughly 76% of waitlist respondents were Coinbase One members. Around 60% said they planned to purchase a home within six months.

Better’s own data reinforces the demand thesis from a different angle. The company found that 41% of its pre-approved mortgage customers qualify for a loan on paper but lack the conventional cash needed for a down payment.

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