Better Home and Finance and Coinbase have introduced the first conforming mortgage secured by crypto assets, enabling homebuyers to pledge bitcoin or USDC as collateral. These loans are purchased by Fannie Mae like any other conforming mortgage, potentially unlocking lower interest rates for qualified borrowers.

Pledged crypto is held in Coinbase’s custodial accounts until the mortgage is fully repaid, and borrowers are not required to top up collateral if asset values decline. The structure splits home financing from down payment financing to ensure Fannie Mae remains unexposed to crypto market volatility.

Fannie Mae’s acceptance of crypto-backed conforming mortgages enhances USDC’s real-world utility and could attract further institutional support for stablecoins. This product may drive increased demand for USDC as a stable collateral asset, while offering homebuyers an alternative funding source without liquidating digital holdings.