A Michigan couple has closed on what's believed to be the first conventional mortgage backed by Fannie Mae that used Bitcoin as collateral, according to Coinbase. The deal marks a milestone in blending cryptocurrency with mainstream home financing.
How the mortgage worked
The loan was structured as a conventional mortgage — meaning it meets Fannie Mae's standards for purchase and securitization — but with a twist: the couple pledged Bitcoin as collateral instead of traditional assets. Coinbase facilitated the transaction, though the exact terms of the collateral arrangement weren't disclosed. Fannie Mae, the government-sponsored enterprise that backs about a quarter of U.S. mortgages, approved the loan under its standard underwriting guidelines.
Using crypto as collateral for a home loan isn't new — a few private lenders have offered similar products. But this is the first time a conventional, Fannie Mae-eligible mortgage has closed with Bitcoin backing. That could open the door for other borrowers who hold significant crypto wealth but lack traditional liquid assets. For now, it's a single data point, but one that signals a shift in how mainstream mortgage finance views digital assets.
Neither Coinbase nor Fannie Mae have announced plans to expand the program. But the fact that a conventional loan with crypto collateral closed at all suggests the infrastructure is in place for more such deals. The Michigan couple, whose identities weren't released, closed this week. Their property location and loan amount remain undisclosed.
