Original Title: Fannie Mae Partners With Coinbase To Allow Crypto And Stablecoin Payments For Home Loans And Mortgages
Original Author: The Winepress
Translation: Peggy, BlockBeats

Editor's Note: What will be the consequences when "buying a house with cryptocurrency" changes from a slogan to a financial structure adopted by Fannie Mae?

For a long time, the core contradiction of the U.S. housing market has not changed: rising house prices, stagnant incomes, and young people systematically blocked from the down payment threshold. The traditional path relies on savings and credit, while cryptocurrency holders are stuck in a "wealthy but illiquid" state. The collaboration between Coinbase and Fannie Mae is essentially opening up a path — converting on-chain wealth into the ability to purchase real estate.

However, the key to this mechanism lies not in "whether you can buy a house" but in "how and at what cost you can buy a house." Essentially, it replaces savings with mortgages and time with leverage: the down payment no longer comes from accumulation but from another loan; assets are not liquidated but repledged. While the threshold is lowered, overall leverage is increased.

When cryptocurrency enters a regulated, government-endorsed housing finance system, it brings not only opportunities but also a potential shift in risk — from liquidity issues to long-term interest rates and leverage pressure.

From a more macro perspective, this may be the starting point for real estate tokenization. Stablecoins, on-chain credit, and asset collateralization are gradually entering the traditional financial system. Housing, as the endpoint of this process, is not surprising.

It is worth noting whether this is truly opening a new door for young people or leading them into a more complex, higher-leverage financial system. The answer still needs time to validate.

Below is the original article:

Earlier this week, government-backed mortgage lender Fannie Mae announced a partnership with the cryptocurrency exchange platform Coinbase, allowing cryptocurrency and stablecoin support for issuing home loans and mortgages.

In a press release issued on March 26, Coinbase referred to this move as a "new path to homeownership."

The Generation Squeezed Out of the Market and a "New Path"

“Millions of Americans now have a new path to homeownership. In a new type of crypto-backed mortgage supported by Coinbase for Better, prospective homebuyers can soon use their Bitcoin or USDC in their Coinbase account to pay the down payment. These loans will be originated and serviced by Better and, like other compliant mortgages, will be backed by Fannie Mae.”

“For the tens of millions of Americans holding digital assets, crypto mortgages offer a new option for homeownership in an increasingly tight housing market.”

Coinbase believes that real estate tokenization could help address this structural issue where a large number of Americans are excluded from the housing market.

“Homeownership is one of the most important engines of intergenerational wealth creation, but accessing this opportunity is becoming increasingly challenging. The traditional housing system has favored older generations who have benefited from decades of compounding home equity growth, further widening the gap between home prices and incomes.”

Previously, The WinePress has also pointed out that a significant number of Americans have effectively been ‘priced out’ of the housing market, and this trend is persistent and worsening without policy adjustments.

In January of this year, Donald Trump mentioned in a cabinet meeting that he did not want home prices to fall but to continue rising to protect existing homeowners' wealth while providing alternative paths for young people, such as the proposed ‘50-year mortgage.’

Innovative Structure of Two Loans: Leveraging Crypto Assets for the Down Payment

Subsequently, Coinbase explained the core logic and benefits of this mechanism, which fundamentally addresses the key friction of ‘liquidity.’

In this model, crypto asset holders can obtain a home loan without the need to put up all cash upfront or sell assets. By incorporating digital assets into the underwriting process as collateral, on-chain wealth can be transformed into real-world purchasing power—expanding the path to homeownership while retaining a long-term investment position.

This product is structurally similar to a traditional mortgage with the same legal protections. However, the key difference is that borrowers do not need to make a cash down payment but instead secure a separate loan by pledging their crypto assets to cover the down payment.

Specifically, the home purchase will involve a ‘two-loan’ structure:

The first loan is a standard Fannie Mae mortgage for the property itself;

The second loan is for the cash down payment, collateralized by the crypto assets you pledge.

One key design of Better is that the two loans have the same interest rate and amortization term, and the borrower only needs to repay a single combined monthly payment, a first in the market.

For example, if you want to purchase a $500,000 property, you can pledge $250,000 worth of Bitcoin to obtain a $100,000 loan for the down payment. During the loan term, your crypto assets will be held in Better's Coinbase Prime account and returned to you after the loan is repaid. Furthermore, when a borrower chooses to pledge Bitcoin, the loan terms will not change due to Bitcoin price fluctuations; even if the market moves, your collateralized loan terms remain the same.

From a broader perspective, this product is seen as a critical attempt to bring crypto assets into the real-world financial system. Stablecoins have been widely used in global payments and fund management, tokenization is gradually entering credit, sovereign debt, and capital markets, with housing finance seen as the next frontier.

These new crypto mortgage loans represent the first step in integrating crypto assets into the core infrastructure of the U.S. housing finance system. This is a realization of the "Everything Exchange" vision, enabling not only on-chain trading of various assets but also the real-world usability of these assets. It demonstrates that crypto assets can interoperate with regulated, government-backed systems, bringing greater economic freedom and expanding the path to achieving the "American Dream."

In an interview with CNBC, Better's CEO Vishal Garg said, "We've now built the infrastructure for any tokenized asset in America to be pledged to help people buy homes. It starts with Bitcoin, it starts with USDC, but it can go to Apple stock, Amazon stock in the future, or any publicly traded mutual fund, bond fund, or even assets you hold in your retirement account (IRA) — all of that could be used to back your home purchase."

Max Branzburg, Coinbase's Consumer and Business Products Lead, added, "Mortgages collateralized by tokens are a significant step towards homeownership for a younger generation facing barriers to traditional down payment savings."

Costs and Risks: Higher Threshold or Another Form of Leverage?

However, this model is not without its costs.

CNBC notes that borrowers will need to repay two loans simultaneously, significantly increasing the overall cost.

The Wall Street Journal also explained this: The operation of this new type of mortgage product is as follows: The buyer first obtains a traditional 15-year or 30-year, Fannie Mae-backed mortgage from Better; at the same time, the buyer does not need to make a cash down payment, but instead obtains a separate loan by pledging Bitcoin or USDC (a mainstream stablecoin) to cover the down payment.

Since the cash down payment is replaced with a second loan, the borrower needs to pay interest on both loans simultaneously, which will significantly increase the overall home purchase cost. The interest rates for the two loans generally align with typical Fannie Mae mortgage rates, or are at most about 1.5 percentage points higher.

In other words, this scheme essentially replaces "savings" with "leverage".

However, Better's CEO Vishal Garg stated that the rates offered on their platform are still lower than those of competitors, and the interest rates and terms for the two loans remain consistent. He said: "You still retain the upside potential of the asset; in the case of USDC, the asset you hold and its generated earnings can be used to offset the interest payments on the mortgage loan."

The Wall Street Journal also cited a Redfin survey from 2025, stating that over 10% of millennials and Gen Z have sold cryptocurrency assets to pay for a home down payment.

From a more macro perspective, this initiative is seen as a key step in the comprehensive tokenization of real estate.

Real estate agent Tony Giordano, focusing on the crypto field, stated in the Property Play podcast: "I can't see a possibility in the next 10 years where the entire real estate industry doesn't move onto the blockchain."

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