Fannie Mae to Accept Bitcoin and USDC as Collateral for Mortgages Through Coinbase Partnership

Fannie Mae will accept Bitcoin and USDC stablecoin as collateral for conforming mortgages through a partnership with Coinbase and Better Home & Finance, marking the first time digital assets can back mortgages in the U.S. housing finance system. Borrowers transfer their crypto from Coinbase to a Better custody wallet while retaining ownership, allowing them to avoid selling assets and triggering taxable events, with USDC holders continuing to earn rewards. The crypto-backed mortgages carry rates 0.5 to 1.5 percentage points higher than standard 30-year loans but include no margin calls if Bitcoin drops in value, with liquidation risk only after 60-day payment delinquency. The program follows orders from the U.S. housing chief last year directing Fannie Mae and Freddie Mac to prepare for crypto assessment, while major lender Newrez also announced it was evaluating Bitcoin and Ethereum for mortgage qualification earlier in 2025.

Fannie Mae's crypto-backed mortgage program structure and mechanics

• ▪USDC holders in the Fannie Mae crypto-backed mortgage program can continue earning rewards while their assets serve as collateral
• ▪The Fannie Mae crypto-backed mortgage program allows borrowers to avoid selling crypto and triggering taxable events
• ▪Fannie Mae will accept cryptocurrency-backed mortgages for the first time, allowing prospective home buyers to pledge Bitcoin or USDC stablecoin as collateral for down payments
• ▪The Fannie Mae crypto-backed mortgage program operates through a partnership between Coinbase and Fannie Mae-approved lender Better Home & Finance
• ▪Borrowers in the Fannie Mae crypto-backed mortgage program transfer their digital assets from Coinbase to a Better custody wallet while retaining ownership

Financial terms, risks, and borrower protections

• ▪In Fannie Mae crypto-backed mortgages, if Bitcoin drops in value, the terms of the mortgage remain unchanged and no additional collateral is required
• ▪Borrowers in Fannie Mae crypto-backed mortgages face liquidation risk only after 60-day payment delinquency, under terms similar to conventional mortgages
• ▪Fannie Mae crypto-backed mortgages have no margin calls if Bitcoin drops in value
• ▪Fannie Mae crypto-backed mortgages carry rates 0.5 to 1.5 percentage points higher than standard 30-year loans, depending on borrower profiles

Regulatory context and institutional adoption trends

• ▪The U.S. housing chief ordered Fannie Mae and Freddie Mac to prepare for crypto assessment in mortgages last year
• ▪Newrez, a $778 billion mortgage lender, announced earlier in 2025 that it was assessing Bitcoin and Ethereum for mortgage qualification

Perspective of Cryptocurrency holders seeking homeownership

• ▪Cryptocurrency holders can maintain their investment positions in Bitcoin and USDC while simultaneously qualifying for mortgage financing through the Fannie Mae program
• ▪The Fannie Mae crypto-backed mortgage program enables cryptocurrency holders to use their digital assets for home purchases without converting to cash

Perspective of Cryptocurrency industry advocates

• ▪The Fannie Mae crypto-backed mortgage program marks a milestone in cryptocurrency adoption by integrating digital assets into the core U.S. housing finance infrastructure

Perspective of Housing affordability advocates

• ▪Higher interest rates on Fannie Mae crypto-backed mortgages ranging from 0.5 to 1.5 percentage points above standard loans may offset the benefits of avoiding crypto liquidation