Mortgage secured with Bitcoin debuts in the US and aims for national expansion.

• Bitcoin-backed mortgages are entering the US real estate market.
• Buyers use Bitcoin as collateral for entry.
• Coinbase expands the use of cryptocurrencies in the real estate sector.

Coinbase and Better Home & Finance have completed financing the first Bitcoin-backed mortgage under Fannie Mae rules, marking a new step in the integration of the real estate market and cryptocurrencies in the United States. Following initial testing, the companies plan to make the product available to qualified borrowers nationwide during the American summer.

The initiative was introduced to the market in March and allows buyers to use their cryptocurrency holdings to finance a property purchase without having to sell their digital assets. Initially, the program accepts Bitcoin and USDC, with the expectation of including other cryptocurrencies in the future.

The first funding round was granted to Joe and Amy, a couple from Ann Arbor, Michigan. According to the companies, both had accumulated wealth in digital assets, but did not have sufficient cash resources to meet the requirements of a traditional entry.

Instead of liquidating their Bitcoin holdings, paying capital gains taxes, and giving up exposure to the asset, the couple used their digital currencies as collateral to obtain the funds needed to purchase their first home.

“At Coinbase, we believe bitcoin should do more than just sit in a wallet. It should work for the people who own it,” said Mark Troianovski, head of consumer and platform partnerships at Coinbase. “Funding the first conventional token-backed mortgage is one of the most tangible demonstrations of that vision we’ve ever seen.”

How does Bitcoin mortgage work?

The structure combines two financing options executed simultaneously. The first follows the traditional mortgage model, compliant with Fannie Mae standards. The second is a separate loan, secured by cryptocurrency, intended to cover the down payment.

In an example presented by the companies, a property worth US$500 could be purchased with a conventional mortgage of US$400 and an additional loan of US$100 for the down payment. To obtain this second financing, the buyer would need to offer approximately US$250 in Bitcoin as collateral.

The two contracts are structured in an integrated way, allowing the client to make only one monthly payment. Furthermore, both share the same interest rate and amortization schedule.

The waiting list has already reached US$250 million.

Interest in the product began even before its national launch. According to the companies, the waiting list represents approximately US$250 million in potential loan volume.

More than half of those interested intend to buy a property in the next six months. Among the states with the highest demand are California, New York, and Florida.

Better also revealed that approximately 41% of its pre-approved clients meet the income and credit requirements but lack sufficient funds for a conventional down payment. For this group, Bitcoin-backed mortgages emerge as an alternative to access the real estate market without selling their cryptocurrencies.