Last Updated on April 2, 2026 by The HD Post Staff

CALIFORNIA – Better Home & Finance and Coinbase announced a partnership March 26 to bring crypto-backed mortgages to millions of Americans.

Qualified borrowers can use bitcoin or USDC as collateral for a down payment. This allows them to secure a standard mortgage without selling their assets.

With typical home values around $775,000 in California, down payments can range from roughly $25,000 to more than $155,000, depending on the loan.

Under the partnership, Better, an AI-native mortgage lender, will originate and service the crypto-backed mortgages, which carry the same Fannie Mae guarantee as other conforming loans.

Bitcoin and USDC are handled through Coinbase, a major U.S. cryptocurrency exchange.

Mortgages aimed at younger Americans

This is the first crypto-backed mortgage to link digital assets to homeownership. Better says the program is aimed at expanding access for younger Americans.

A recent report found that 67% of crypto holders are 45 years old or younger, and 26% earn less than $75,000 annually.

In addition, 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.

“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 down payment,” said Max Branzburg, head of consumer and business products at Coinbase.

Interest rates will be higher

A spokesperson for Coinbase said that rates for crypto-backed mortgages will be higher than a standard 30-year mortgage by between half a percentage point and 1.5 percentage points, depending on the borrower profile.

The crypto-backed mortgage does not include margin calls – meaning a decline in bitcoin does not change mortgage terms or require additional collateral.

When bitcoin or USDC is used as collateral instead of a cash down payment, it may be subject to liquidation after 60 days of missed payments, similar to conforming mortgages.

Better and Coinbase said they plan to expand the program to allow other digital assets, including tokenized stocks, bonds and real estate, to be used as collateral.

Correction: An earlier version of this article misstated the typical California home value. It has been updated to $775,000.