US-based Coinbase has partnered with Better Home & Finance (Better.com) mortgage lender, introducing cryptocurrency-backed loans.
From now on, home buyers can pledge Bitcoin (at 250% collateral) or USDC (at 125%) as collateral for home loans without selling (tokens). This eliminates capital gains tax because there are no capital gains.
In addition, these loans comply with the new rules of the Federal Housing Finance Agency (FHFA), which makes them eligible for lower interest rates than private cryptocurrency loans.
Of course, the terms and conditions of loans do not change amid the volatility of the crypto market. While this carries the risk of foreclosure if the property’s value declines, it gives homebuyers more flexibility in paying off the loan.
Coinbase is entering an $18.5 trillion market cap
The Coinbase to announce It comes after a June 2025 directive from the FHFA ordering the second mortgage lenders, Fannie Mae and Freddie Mac, to recognize digital assets as eligible collateral for the $18.5 trillion financial market.
The product tracks the hurdles of homeownership, with the median US home price estimated at $429,000 as of February 2026. Meanwhile, the median age of homebuyers has peaked at 40 by the end of 2025.
It’s a story, Better.com The stock (Nasdaq: BETR) gained 5.41% on the day to a closing price of $33.12.
Source: MarketWatch
The rise of crypto-backed loan providers
America’s largest bank, JPMorgan Chase, now to allow a select group of clients to use Bitcoin and Ethereum as collateral for loans through its Onyx blockchain platform.
BNY Mellon offers a equal serviceproviding crypto custody and credit at the same time. Meanwhile, Wells Fargo and Bank of America view Bitcoin ETF shares as collateral.
The leading providers of crypto-backed loans in the middle-income sector include Nexo and Ledn, while in the formal sector, they are led by Aave and Morpho.
Sygnum Bank, a Swiss cryptocurrency bank, offers loan solutions with digital assets or their hashrate as collateral.
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