Coinbase and Nasdaq-listed Better Mortgage have expanded their Bitcoin-backed mortgage product to general availability across the United States, following a successful pilot program launched in June. The service enables borrowers to use Bitcoin holdings as collateral for down payments without liquidating their positions, potentially creating new opportunities for crypto professionals looking to enter the housing market.
Product Details and Industry Context
The mortgage product, structured to comply with Federal National Mortgage Association (Fannie Mae) guidelines, targets younger Bitcoin holders who have been priced out of traditional homeownership paths. Coinbase One members can now pledge crypto assets as collateral during the mortgage underwriting process while maintaining their long-term investment positions.
Ben Shen, head of financial services and loyalty products at Coinbase, noted the product allows digital assets to function more practically in real-world applications while expanding homeownership access. Better Mortgage CTO Ziggy Jonsson pointed to challenging market conditions in 2025, including high interest rates and record home prices, which pushed the median age of first-time buyers to 40.
Coinbase One members receive a rebate equal to 1% of the mortgage value, capped at $10,000. The first loan under this program closed in Michigan in June, with borrowers using Bitcoin holdings to fund their down payment without selling their assets.
Market Growth and Competition
While Bitcoin-backed mortgages remain a niche offering, the sector shows growth potential. Crypto-backed lender Milo reported surpassing $100 million in digital asset mortgages earlier this year, including a record $12 million loan. Research from Ledn, another major player in this space, projects the market could expand from its current $3 billion valuation to $1 trillion over the next decade.
Implications for Crypto Professionals
This development offers practical financial tools for blockchain industry workers accumulating wealth in digital assets. As more employers compensate employees in cryptocurrency and professionals hold significant Bitcoin positions, these mortgage products provide liquidity options without triggering taxable events through asset sales. The expansion signals growing institutional acceptance of crypto assets in traditional finance, potentially influencing how web3 professionals manage their compensation and investment strategies.
