Coinbase and Better Mortgage Unleash Bitcoin-Backed Mortgages Across US
Coinbase and Better Mortgage have rolled out Bitcoin-backed home loans across the US. This new product allows borrowers to pledge their BTC as collateral instead of selling it, removing a major hurdle for those looking to access traditional financing. The offering went live on August 26, 2026, after generating $260 million in demand through its waitlist.
The mortgage structure operates by issuing two loans: a conventional Fannie Mae mortgage backed by the property itself and a second down payment loan backed by the pledged crypto. Both loans carry matching interest rates and amortization schedules, and are combined into one monthly payment. Pledged Bitcoin is custodied through Coinbase Prime, with the collateral threshold set at 250% of the down payment loan.
One key feature of this product is its lack of margin calls. Unlike traditional crypto-backed lending products, borrowers will not see their collateral liquidated due to market price fluctuations. Instead, collateral is only sold after payments have been delinquent for 60 days. This shift in risk profile makes the product more attractive to lenders and borrowers alike.