Fannie Mae Taps Coinbase for Bitcoin and USDC Mortgage Down Payments
Fannie Mae, which manages a roughly $4.1 trillion mortgage portfolio, has unveiled a new product allowing borrowers to use cryptocurrency—specifically Bitcoin (BTC) and USD Coin (USDC)—as down payment collateral. The program was developed with Coinbase and digital lender Better Home & Finance and replaces traditional cash with crypto held as pledged collateral, aiming to expand payment options for qualified borrowers.
The initiative is significant because it represents one of the largest U.S. mortgage players formally accommodating digital assets, potentially easing access for crypto holders while testing custody, valuation and compliance workflows at scale. Market observers say the pilot will be watched closely for how it manages volatility, liquidity and regulatory oversight, and whether other lenders follow suit as institutions seek practical bridges between crypto holdings and conventional financial services.