Crypto-Backed Home Loans Set to Launch in Industry First

Fannie Mae is preparing to support a new type of mortgage that allows borrowers to use cryptocurrency as collateral. The initiative, developed with Coinbase and Better Home & Finance, marks a significant step in bringing digital assets into mainstream housing finance.

Under the new structure, homebuyers can pledge crypto holdings such as bitcoin or USDC instead of selling assets to fund a down payment. This allows borrowers to maintain market exposure while avoiding potential capital gains taxes tied to liquidation.

The loans will be issued as conforming mortgages backed by Fannie Mae. That means they will follow the same standards and protections as traditional home loans. For…