Crypto-Backed Mortgages Launch as Better Home and Coinbase Target 52 Million Digital Asset Holders

Better Home and Finance and Coinbase have launched a new mortgage product that lets homebuyers use cryptocurrency as collateral for a down payment.

Under the program, eligible borrowers receive two loans: a standard Fannie Mae conforming mortgage and a separate loan secured by their crypto holdings. Better holds the digital assets through Coinbase until the loan is repaid.

The product targets the estimated 52 million Americans who hold digital assets. Currently, only about 1 percent of homebuyers between July 2024 and June 2025 used crypto in a home purchase.

Financial advisers are urging caution. The collateralization ratio is steep. A borrower with $100,000 in Bitcoin receives only $40,000 in down payment credit. If payments fall 60 days behind, Better can liquidate the pledged crypto to cover the debt.

For most buyers, traditional down payment methods remain more straightforward. But the product signals a broader push by financial institutions to integrate digital assets into mainstream lending.

The launch comes as the crypto market remains volatile. Bitcoin prices have swung sharply in recent months, partly due to geopolitical tensions affecting global energy markets. Borrowers who use crypto as collateral take on the risk that their holdings could lose value while their loan is still active.