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Coinbase and Better.com Unveil Crypto-Backed Mortgages

source-logo  coinpedia.org 26 March 2026 23:47, UTC
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Story Highlights

  • Coinbase has partnered with Better.com to provide token-backed mortgages for the $18.5 trillion market.

  • Crypto holders can now pledge BTC and $USDC for home loans without triggering token sales and capital gain taxes.

  • The development follows an earlier directive by FHFA for Fannie Mae and Freddie Mac to legitimize crypto collateral for mortgages.

Leading US exchange Coinbase has partnered with Better Home & Finance (Better.com) mortgage lender, to launch cryptocurrency-backed mortgages.

Henceforth, home buyers can pledge their Bitcoin (at 250% collateral) or $USDC (at 125%) as collateral for home loans without selling them (the tokens). This eliminates capital gains tax since there are no realized gains.

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Additionally, these loans comply with the new Federal Housing Finance Agency (FHFA) standards, which make them eligible for lower interest rates than private cryptocurrency loans.

Notably, the loan terms and conditions remain unchanged amid crypto market volatility. While this introduces liquidation risk if the asset’s value falls below the threshold price, it provides home buyers with loan repayment stability.

Source: MarketWatch

The rise in crypto-backed debt providers

America’s largest bank, JPMorgan Chase, now allows a select group of clients to use Bitcoin and Ethereum as loan collateral through its Onyx blockchain platform.

BNY Mellon offers a similar service, providing crypto custody and loans simultaneously. Meanwhile, Wells Fargo and Bank of America take spot Bitcoin ETF shares as collateral.

The leading providers of crypto-backed loans in centralized finance include Nexo and Ledn, while in the decentralized space, the leading providers are Aave and Morpho.

Sygnum Bank, a Swiss cryptocurrency bank, provides credit solutions with digital assets or their hashrate as collateral.

coinpedia.org