A government-backed mortgage giant is preparing to let homebuyers use cryptocurrency to secure a home loan for the first time.
Fannie Mae is moving toward accepting crypto-backed mortgages, a shift that could bring digital assets further into the mainstream housing market after a new partnership between Better Home & Finance and Coinbase.
The new product would allow borrowers to pledge holdings such as Bitcoin or USDC as collateral for a down payment rather than selling those assets, according to company statements and reporting from The Wall Street Journal.
Under the structure, buyers still receive a traditional 15- or 30-year mortgage backed by Fannie Mae, but take out a separate loan secured by their cryptocurrency to cover the down payment. This means borrowers could face higher overall costs, with interest rates potentially up to 1.5 percentage points above standard mortgages, according to the report.
The development follows a directive from the Federal Housing Finance Agency and its director, Bill Pulte, who in June 2025 ordered Fannie Mae and Freddie Mac to prepare proposals that would allow cryptocurrency to be counted as an asset in mortgage applications without converting it to U.S. dollars, according to prior reporting by Sherwood News.
That order marked a significant reversal from earlier policy, which prohibited the use of virtual currency for real estate transaction deposits, and was described by some analysts as a potential turning point for access to homeownership.
“This is a really revolutionary moment that’s going to change home ownership forever,” former regulator Jason Brett said at the time, according to Sherwood News.
Backers of the new crypto-backed mortgage product say it could unlock homeownership for millions of Americans who hold digital assets but lack liquid cash or want to avoid triggering capital-gains taxes by selling.
“A lot of those crypto owners and investors have not been able to become homeowners,” said Max Branzburg of Coinbase, per the WSJ.
Younger buyers may be a key target. Company data cited in the announcement suggests digital asset ownership skews younger, with a large share of holders under 45.
A 2025 survey also found that roughly 13% of Gen Z and millennial buyers had already sold crypto to fund down payments, according to Redfin.
Still, the product arrives amid ongoing volatility in crypto markets. Bitcoin has fallen more than 40% from its October 2025 peak above $120,000, as previously reported by The Dallas Express, underscoring concerns about using a highly fluctuating asset in long-term financial commitments.
Some have cautioned that crypto’s volatility could complicate risk assessments, with NYU Stern adjunct professor Austin Campbell saying lenders may need to apply “haircuts” to digital assets given their history of steep price swings, according to Sherwood News.
Others have raised implementation concerns, including criticism that limiting eligible assets to those held on U.S.-regulated exchanges could exclude investors who use self-custody, as Casa CEO Nick Neuman argued.
