Coinbase and Better Mortgage Launch Bitcoin‑Backed Down‑Payment Loans

Coinbase (NASDAQ: COIN) and Better Mortgage, a subsidiary of Better Home & Finance Holding Co. (NASDAQ: BETR), have moved their token‑backed mortgage product to general availability as of August 26, 2026. The offering pairs a conventional Fannie Mae‑conforming home loan with a separate bitcoin‑secured loan that funds the borrower’s down payment.

How the structure works

The first lien remains a standard conforming mortgage secured by the property. A second loan, originated by Better and collateralized by pledged bitcoin held in Coinbase’s custodial platform, provides the cash needed for the down payment. Bitcoin never enters the conforming loan itself, allowing the primary mortgage to meet Fannie Mae guidelines without converting the cryptocurrency to U.S. dollars.

Eligibility and terms

• Borrowers must pledge bitcoin valued at 250 % of the down‑payment loan amount (e.g., $100,000 of bitcoin secures a $40,000 down‑payment loan).
• Eligible Coinbase One members receive a lender credit equal to 1 % of the mortgage, refinance, or HELOC balance, up to $10,000.
• The bitcoin‑secured loan does not trigger margin calls if the price of bitcoin falls; collateral may be sold only after 60 days of payment delinquency.

Market response

Prior to general availability, a waitlist generated more than $260 million in projected loan volume. Survey data indicated that 76 % of respondents were Coinbase One subscribers and 60 % intended to purchase a home within six months.

Broader implications

The product expands Coinbase’s consumer‑finance portfolio, which now includes stocks, lending, and other services. It also illustrates a growing trend among lenders to separate cryptocurrency price risk from loan repayment obligations.