Better and Coinbase issue the first crypto-backed conventional mortgage

Personal Finance / Mortgages Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure . Better and Coinbase issue the first crypto-backed conventional mortgage Hal Bundrick, CFP® · Senior Writer Updated Thu, June 4, 2026 at 6:50 PM GMT+2 4 min read We may look back on this in a few years and say, "Remember how we thought that was a big deal back then?

Now, it's everywhere. " The first cryptocurrency-backed conventional mortgage has been issued to a couple in Michigan. If the future of finance is tokenization , this will be the first of many.

Converting traditional real-world assets — such as currency, real estate, stocks, and bonds — into digital tokens on a blockchain is expected to reframe the world's financial infrastructure. And the future began in June 2026. A 'definitely compelling' bitcoin-backed home loan option Better and Coinbase have issued their first Fannie Mae-backed crypto mortgage to Joe and Amy of Ann Arbor, Michigan.

When Joe first considered getting a mortgage and making a down payment with bitcoin , his options seemed limited. "The two alternatives me and my wife were looking at was either selling and paying long-term cap gains or using a margin loan type structure, which is quite stressful because the interest rate is obviously very variable. And then there's also a margin call risk associated with that, which is obviously scary," Joe told Yahoo Finance.

Then he heard about the Better/Coinbase crypto-backed mortgage. "It was definitely compelling," he added. His wife, Amy, was "a little skeptical," Joe admits.

"I think now that we're all finished with it, it's all in a better spot. But yeah, definitely telling her that, 'We're doing this new exotic mortgage product that's never been done before. It'll probably work out fine.

'" However, their bitcoin is safe and sound in a custody account that guarantees their down payment, and, with the expectation of future bitcoin appreciation, Joe said he now has "positive feelings" about the mortgage industry. "For me, as a person who's maybe a little more with the bitcoin ethos of you're skeptical of centralized government — like, 'Oh, this is a government program that's clearly working for me and my family. ' That's awesome.

" The beginning of tokenized asset loans Vishal Garg, founder and CEO of Better, believes crypto-backed conventional mortgages are a generational next step. "Americans used to keep all their money in banks," Garg told Yahoo Finance. "People investing in stocks, bonds, and all that was for rich people.

Now, American households have $35 trillion in stocks, bonds, and digital assets, and only $5 trillion deposited in their checking or savings accounts in a bank. Young people are investing in digital assets. They're not keeping their money in cash, earning zero percent in the banking system.

" The tokenized mortgage begins with cryptocurrencies and stablecoins but will inevitably expand to other digital assets, such as tokenized Tesla and SpaceX stock, and tokenized IBM and Con Ed stock, he said. Roy Zhang, director of product at Coinbase, said the crypto mortgage process is all digital. "We connect our millions of users who have significant bitcoin holdings on Coinbase with this ability to get crypto-backed mortgages with their bitcoin portfolio," Zhang said.

"They click through on our product interface. They go through the application process on Better. Better approves them.

They sign in to their Coinbase account, and with a single click, their bitcoin moves into a custodial wallet. And then they're done. " Fannie Mae backs the Better/Coinbase crypto mortgage as a conventional loan , and that's important, Garg said.

"The fact that it complies with the underwriting requirements of a Fannie Mae conforming mortgage means that Fannie Mae, which last year, with Freddie Mac, purchased $1. 2 trillion of mortgages from the market, almost $40 billion a day. It just means it's a standard product in the financial system.

It's a huge deal because it basically means that you have a U. S. government-sponsored enterprise accepting digital assets as a replacement for cash in a bank account as collateral.

" Conventional crypto loan details While Joe and Amy are the first to get a 30-year, fixed-rate crypto-backed conventional mortgage, a full rollout of the product is set for later this summer. In the meantime, there's a waitlist on the Better. com website .

Who is showing the most interest? 76% of all respondents are Coinbase users 37% hold $500,000 or more in crypto 63% expect to buy a home in the next six months Based on the waitlist data, Better estimates a projected loan volume of $250 million. Currently, loans can be pledged with bitcoin and USDC.

The digital assets are pledged as collateral without liquidation, preventing capital gains taxes and allowing for future appreciation. Coinbase One members are eligible for a rebate equal to 1% of the mortgage amount, capped at $10,000. The rebate is paid by Better and can be applied as a lender credit toward closing costs or to further lower the borrower's interest rate.

From Coinbase: How the crypto-backed mortgage works . More from Yahoo Scout What makes this mortgage program government-backed? What are the benefits of using crypto mortgages?

How does the crypto-backed mortgage process work? Who is eligible for these cryptocurrency mortgages? Read More Crypto-backed mortgages are hitting the mainstream.

Here's how they work. Fannie Mae recently announced it will begin accepting crypto as collateral for conventional mortgages. Here's how crypto-backed mortgages work.

Want to buy a house with crypto? Here's what to expect. There are several ways to buy a house with cryptocurrency rather than a regular mortgage.

Find out which option is best, plus the benefits and risks of each. Coinbase and American Express to launch 4% bitcoin reward card The new Coinbase One Card, slated for fall 2025, will earn up to 4% bitcoin back and is exclusively available to Coinbase One subscription members. Trump has called for a strategic bitcoin reserve.

How it would work. President Trump is proposing holding and even adding to the government’s bitcoin store, a significant departure from the previous administration. Here's how the strategic bitcoin reserve would work.

Do you need a bitcoin credit card? What you can gain (and lose) by earning bitcoin rewards on spending What you need to know about crypto credit card rewards and how to decide if they're right for you. How to navigate a crypto meltdown: 'Be willing to hold on' Financial advisors are reversing course on cryptocurrencies as an investment.

So what happens when the next crypto crash occurs?