Unlike other bitcoin loans, there is no risk of liquidation here if the price falls.
In the future, other cryptocurrencies or tokenized actions could be added.
The mortgage company Better, in alliance with the exchange Coinbaselaunched the first mortgage loan program backed by digital assets to the US market with the endorsement of Fannie Mae. This initiative, announced on March 26, 2026, allows home buyers to use bitcoin (BTC) or the USDC stablecoin as collateral to cover the down payment without needing to liquidate their holdings.
Operating under the guidelines of Fannie Mae—a U.S. government-sponsored enterprise that guarantees liquidity in the mortgage market—these loans are classified as “conforming loans.” This means that Bitcoin and USDC users will be able to access the same interest rates as a traditional loan.
The mechanism designed by Better and Coinbase seeks to solve one of the main obstacles for digital asset investors: the need to sell their assets and pay capital gains taxes to obtain the cash needed for a house.
According to the release official, The process works by pledging (or collateralizing) assets through Coinbase Custody. The user does not sell his bitcoin; instead, it locks them up as collateral. This allows:
- Avoid tax events: since there is no sale, no immediate tax obligations are generated.
- Maintain market exposure: the owner retains his assets, benefiting from possible future revaluation.
- Substitute Cash: The value of the tokens acts as a substitute for the initial cash payment required by banking standards.
Better CEO Vishal Garg said the goal is to “democratize homeownership” for the roughly 52 million Americans who own digital assets, a group that often encounters barriers in the traditional financial system.
No risk of liquidations due to volatility
One of the most disruptive features of this product is protection against market volatility. Unlike other cryptocurrency-backed loans, this program does not include margin calls (margin calls) nor requests for additional capital if the price of bitcoin falls.
«If the value of bitcoin falls, the terms of the mortgage remain unchanged. “Market movements alone never trigger a liquidation,” the company explains.
The only way the collateral is at risk of liquidation is if the borrower incurs a late payment of 60 daysa rule that aligns with standard protocols for traditional mortgages in the United States.
In addition, for those who use the USDC stablecoin, the program offers an additional incentive: the funds pledged generate rewards (yield) that can be used to offset monthly mortgage payments, thereby reducing the effective interest rate.
Fannie Mae’s role in this release
Integration with Fannie Mae is the key point for the long-term viability of this model. By complying with its regulations, Better can securitize and sell these mortgages on the secondary market, ensuring a constant flow of capital for new loans.
This opening responds to a demographic reality: according to data managed by Coinbase45% of young investors in the US own cryptocurrencies, compared to 18% of older generations. For this sector of the population, whose wealth is concentrated in assets on-chaintraditional credit channels were, until now, obsolete.
At the moment, registration for early access is available on Better’s website, with plans to expand accepted assets to tokenized stocks and other digital financial instruments in the future.
As CriptoNoticias has reported, work on this type of financial products has been underway in the United States since at least June of last year.
At that time, William J. Pulte, director of the Federal Housing Finance Agency (FHFA) of the United States, revealed that the entity would evaluate the possible use of cryptocurrency holdings when qualifying applicants for mortgage loans.