Better and Coinbase Launch the First Token-Backed, Conforming Mortgage
By integrating home finance with digital assets, millions of Americans can now achieve their homeownership goals by pledging BTC or USDC without needing to liquidate their holdings or potentially triggering a taxable event1.
Better Home & Finance Holding Company (NASDAQ:BETR), and Coinbase (NASDAQ:COIN), today announced a milestone partnership to bring token-backed mortgages to millions of Americans. Token-backed mortgages are originated and serviced by Better, the leading AI-native mortgage originator, and benefit from the same backing of Fannie Mae as other conforming mortgages. Bitcoin (BTC) and USDC pledges are powered by Coinbase, the largest and most trusted cryptocurrency exchange in the US. Americans who qualify for a mortgage with Better will now be able to pledge Bitcoin or USDC as collateral to fund their cash down payment, securing a standard conforming mortgage without liquidating tokenized assets or potentially triggering a taxable event1.
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The launch of the Better + Coinbase token-backed mortgage product marks the first time an AI-native mortgage lender has used secured digital asset loans and the platform of a major crypto exchange to create a direct pathway from digital wealth to homeownership. Interested borrowers can register for early access today at better.com/crypto-backed-mortgages.
"Better was founded to make homeownership more accessible for all Americans, and this partnership with Coinbase introduces a new pathway to realizing the American Dream for the 52 million Americans who own digital assets," said Vishal Garg, the CEO and Founder of Better. "Together, we are taking a major step towards truly democratizing homeownership for hardworking Americans."
For decades, the path to homeownership has required Americans to sell assets, liquidate investments, or withdraw retirement savings to cover a cash down payment; often triggering capital gains taxes or early withdrawal penalties.
Market reports suggest 52 MM American adults or 20% of American adults have owned digital assets. Token-backed mortgages empower Americans who own digital assets but lack sufficient downpayment funds, or prefer to keep downpayment funds liquid, to secure a home loan by pledging their tokenized assets as collateral. The tokenized asset pledge acts as a substitute for the cash downpayment, meaning customers can utilize their digital assets, without selling them, to satisfy downpayment requirements for a mortgage.
"The ability to transform digital wealth into housing access is an exciting milestone in our mission to increase economic freedom," said Max Branzburg, Head of Consumer and Business Products at Coinbase. "Token-backed mortgages are a major first step to unlocking homeownership for the younger generations that have struggled with barriers to saving for a traditional downpayment."
Homeownership has traditionally favored older generations and is increasingly out of reach for younger Americans, due largely in part to the divergence of home prices versus income. According to Coinbase's 2025 State of Crypto Report, 45% of younger investors say they already own crypto, compared with 18% of older investors making younger generations 2.5x more likely to be token holders. As younger generations continue to build wealth through digital assets, traditional pathways to homeownership, designed around home equity and financial markets, are no longer aligned with how modern wealth is created. The token-backed mortgage helps bridge the gap between digital wealth and real estate, providing younger Americans with greater access to housing.
NCA 2025 State of Crypto Holders report highlights that tokenized-asset ownership is more demographically diverse than commonly assumed:
- 67% of token holders are 45 years old or younger
- 26% earn less than USD $75,000 annually
- 12.7% of Gen Z and Millennial homebuyers have already sold tokenized assets to fund a down payment compared to 3.5% of Gen X and 0.5% of Baby Boomers (Redfin, 2025)
The token-backed mortgage will include key borrower benefits including:
- No margin calls, no top-ups. If BTC drops in value, the mortgage terms remain unchanged, and no additional collateral is required. Market movements alone never trigger liquidation.
- For users interested in pledging Bitcoin or USDC as collateral in lieu of a cash down payment, their collateral is only at risk of liquidation in the event of a 60-day payment delinquency, similar to conforming mortgages.
- For users interested in pledging USDC, unlike a conforming cash down payment, pledged USDC earns rewards that can help offset mortgage payments, enabling borrowers to reduce their net effective interest rate, and making property financing more affordable than ever before2.
- Unlike traditional securities backed loans for downpayment, usually provided by private banks to their best clients, due to the unique architecture of Coinbase Custody, consumers will be able to pledge certain quantities and certain types of tokens, rather than having to pledge the entire value of their account. Better and Coinbase intend to partner to expand the digital assets eligible for the product over time, expanding it to tokenized equities, fixed income and other tokenized real estate assets.
Token-backed mortgages originated by Better are designed in accordance with Fannie Mae guidelines and remain as standard conforming mortgage loans, identical to other conforming mortgages. This will enable significantly lower interest rates than those traditionally associated with token-backed loans. The digital asset pledge is associated with a separate privately financed loan that will be used to fund the down payment.
All Coinbase One members who procure a token-backed or regular mortgage product through Better will be eligible for a rebate worth 1% of the mortgage value, capped at $10,000, to cover closing costs and fees. For example, a Coinbase One member securing a $800,000 mortgage through Better would be eligible to receive a $8,000 rebate.3
The groundbreaking initiative with Coinbase is the latest in a series of product launches and partnerships that make the mortgage experience faster, fairer, more transparent, and cheaper for Americans through Better's AI-native Tinman® platform, and voice-based AI loan assistant Betsy™.
About Coinbase
Crypto creates economic freedom by ensuring that people can participate fairly in the economy, and Coinbase (NASDAQ:COIN) is on a mission to increase economic freedom for more than 1 billion people. We're updating the century-old financial system by providing a trusted platform that makes it easy for people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and fast, free global transfers. We also provide critical infrastructure for onchain activity and support builders who share our vision that onchain is the new online. And together with the crypto community, we advocate for responsible rules to make the benefits of crypto available around the world.
About Better Home & Finance Holding Company
Better Home & Finance Holding Company (NASDAQ:BETR) is the first AI-native mortgage and home equity finance platform, and first fintech to fund more than $110 billion in loan volume. Since 2016, Better has leveraged its industry-leading AI platform, Tinman®, to achieve a singular mission of making homeownership cheaper, faster, and easier for all Americans. Tinman® allows customers to see their rate options in seconds, get pre-approved in minutes, lock in rates, and close their loan in as little as three weeks. In addition, Betsy™, leveraging Tinman MCP, the first AI loan agent built exclusively for the mortgage industry, is revolutionizing the homebuying journey by delivering timely application status updates to consumers, answering questions, and moving their loan application along 24/7/365. Better's mortgage offerings include GSE-conforming mortgage loans, FHA and VA loans, and jumbo and Non-QM mortgage and home equity loans. Better serves customers in all 50 US states and the United Kingdom.
For more information, follow @betterdotcom on Instagram and TikTok and @tinmanAI on X.
Footnotes:
- Tax treatment of crypto pledges can vary. Users are responsible for their own tax reporting and should consult independent tax advisors.
- Coinbase does not intend for the reward-bearing products described herein to constitute a securities offering, and purchasing these products is not the same as investing in a securities offering. The USDC rewards rate is subject to change and can vary depending on your region and ongoing experimentation. USDC is not currency or legal tender.
- All rebates are paid and provided by Better.
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