Coinbase and Better Home & Finance have launched a home mortgage product that raises a down payment using bitcoin as collateral for the first time.

Cryptopolitan, a blockchain media outlet, reported on Wednesday that the companies said a couple in Ann Arbor, Michigan, completed the first loan using the product and they plan to roll it out across the United States in summer 2026.

The core of the product is a structure that combines a conventional home mortgage with a separate crypto-backed loan. Alongside a standard mortgage that meets Fannie Mae conforming loan requirements, it funds the amount corresponding to a home down payment through a crypto-backed loan. For example, for a $500,000 home purchase, $400,000 is covered by a standard mortgage and the remaining $100,000 is filled with a loan backed by cryptocurrency.

The collateral recognition ratio varies by asset. Bitcoin-backed loans apply a roughly 2.5-to-1 ratio, meaning in the same case borrowers must hold at least $250,000 worth of bitcoin at Coinbase. USDC-backed loans require a lower 1.25-to-1 ratio. Both loans apply the same interest rate and repayment schedule, and the monthly payment is bundled into a single payment. The collateral cryptocurrency is held in a Coinbase custody account during the loan term. The product is offered in 15-year and 30-year fixed-rate terms.

The first users were a couple in their early 30s, Joe and Amy. Joe, a software engineer, and Amy, a graduate student, held crypto assets but lacked enough cash for a typical home down payment. Joe said the only existing options were to sell assets and pay long-term capital gains tax or use a margin loan with a sharply fluctuating interest rate, and that the risk of a margin call was also a burden.

The product differs from typical private crypto loans in that it has a structure linked to Fannie Mae. Vishal Garg (비샬 가그), founder and CEO of Better, said Fannie Mae and Freddie Mac handled a combined $1.2 trillion in home purchases last year. Better said the structure allows it to access the existing secondary market directly. It also said 41 percent of pre-approved customers meet income and credit requirements but lack cash available for immediate payment.

Demand has also been confirmed. Expected loan volume based on the waiting list is about $250 million. Of those registered, 76 percent were existing Coinbase users, and 37 percent held $500,000 or more in cryptocurrency. The companies also tallied that 63 percent wanted to buy a home within 6 months. The regions with the highest interest were California, New York and Florida.

Mark Troianovski (마크 트로이아노브스키), Coinbase's head of consumer and platform partnerships, said the partnership is an example of using crypto assets beyond trading. He said, "Tens of millions of Americans have accumulated real wealth in digital assets," and added, "Now those assets have a direct pathway to homeownership."

In the early launch, supported assets are limited to bitcoin and USDC. The companies plan to expand the supported digital assets in the future. Better also said 41 percent of pre-approved customers meet income and credit requirements but lack cash available for immediate payment. If the structure expands, attention is focused on whether it can absorb demand delayed by a lack of cash.

Learn more about crypto-backed mortgages ↓https://t.co/UZLzpwOnXc Legal stuff: Subject to credit approval by Better. Coinbase does not offer mortgage advice, and is not involved in the loan underwriting process. All mortgages and crypto-backed loans are offered and serviced…