Better and Coinbase have partnered to offer the first token-backed conforming mortgage, allowing borrowers to pledge BTC or USDC as collateral.
The product, which marks the first instance of a conforming mortgage structured around a digital asset pledge, is originated and serviced by Better and backed by Fannie Mae, carrying the same guarantee structure as standard conforming mortgages. The digital asset collateral is held through Coinbase Custody and is associated with a separate privately financed loan used to fund the down payment.
How the product works
Borrowers who qualify for a mortgage through Better's platform can pledge BTC or USDC as collateral to satisfy the down payment requirement. Unlike traditional securities-backed loans, the architecture allows borrowers to pledge specific quantities of eligible tokens rather than their entire account balance.
Under the product terms, market fluctuations in BTC value do not trigger margin calls or require additional collateral. Liquidation of collateral is only initiated in the event of a 60-day payment delinquency, consistent with conditions applied to standard conforming loans. Borrowers pledging USDC also retain access to staking rewards, which can be applied to offset mortgage payments.
Coinbase One members who obtain a token-backed or standard mortgage through Better are eligible for a rebate equivalent to 1% of the mortgage value, capped at USD 10.000, applicable to closing costs and fees.
The mortgage is structured in accordance with Fannie Mae guidelines, enabling interest rates lower than those typically associated with private token-backed lending products.
Market context and intended borrower profile
The product is positioned to address a growing gap between how younger generations accumulate wealth and how traditional mortgage qualification and down payment structures are designed.
According to Coinbase's 2025 State of Crypto Report, 45% of younger investors hold digital assets, compared with 18% of older investors. Separately, data from Redfin (2025) indicates that 12.7% of Generation Z and Millennial homebuyers have already sold digital assets to fund a down payment, compared with 3.5% of Generation X and 0.5% of Baby Boomers.
The NCA 2025 State of Crypto Holders report adds that 67% of token holders are 45 years old or younger, and 26% earn less than USD 75.000 annually, suggesting the potential borrower base is broader in demographic terms than typically assumed.
Better estimates approximately 52 million American adults currently hold digital assets, representing roughly 20% of the adult population. The partnership frames the token-backed mortgage as a mechanism for this segment to access home financing without triggering potential capital gains tax events associated with asset liquidation.
Eligible digital assets are currently limited to BTC and USDC. Better and Coinbase have indicated they intend to expand the product to include tokenised equities, fixed income instruments, and other tokenised real estate assets over time. Interested borrowers can register for early access through Better's website.
