For the lucky (or prescient) people who stacked some Bitcoin back when the digital currency sold for a few dollars instead of tens of thousands, there aren’t a lot of direct benefits if you don’t cash out. Crypto doesn’t pay dividends, and not a lot of banks are excited to see your bitcoin as collateral on a loan application.
But AI-focused lender Better is hoping people with “diamond hands”—crypto investors who aim to hold the currency for the long-term—are also interested in buying a home, with a new “Token-Backed Mortgage Program” that substitutes a crypto loan for a down payment.
The product is available to anyone—though users of the popular crypto exchange Coinbase get a closing credit—and currently names only two types of digital crypto tokens (among thousands) as eligible for the program.
“By enabling borrowers to pledge their digital assets in the mortgage underwriting process, we are allowing crypto to be more useful and powerful in the real-world—expanding the pathways to homeownership while preserving long-term investment positions,” said Ben Shen, head of Financial Services & Loyalty products at Coinbase, in a statement.
How useful the product will be for mainstream consumers is unclear. Around 20% of Americans have traded in crypto at some point, with a slightly higher proportion of upper-income families saying they invested in digital currency. The companies are offering up to $10,000 as a rebate for borrowers who use the product.
While the idea of qualifying more borrowers, who have faced massive barriers from high home prices and mortgage rates, is attractive, crypto is far from mainstream. The only two accepted tokens for the mortgage appear to be Bitcoin and USDC—a so-called “stablecoin” that is meant to hold the same value as a dollar (while usable on crypto exchanges).
Whether a significant number of prospective buyers are willing to put up tens of thousands of dollars in crypto (at a discount) to secure what is really a down payment loan is another question, though, with Better valuing Bitcoin at only 40% of current market value, and noting that rate may vary based on “market volatility” among other factors.
In a release, the company said its waitlist showed $260 million “in projected loan volume” ahead of launch.
“This partnership has always been about expanding access to homeownership by meeting borrowers where they are,” said Ziggy Jonsson, chief technology officer at Better Mortgage, in a statement.
The big picture
Crypto assets are historically volatile, with the value of Bitcoin falling over 50% between 2025 and 2026, before rebounding almost 20% just in the past month.
Donald Trump’s second administration has largely supported crypto companies and usage, with the president launching his own signature digital token. Crypto supporters have consistently touted the decentralized exchange and anonymity of the technology, while critics note these characteristics have allowed crypto to flourish in scams and money laundering.
The FHFA under Trump announced last year that Fannie Mae and Freddie Mac would consider crypto in loans, facilitating products like Better’s, which was previously announced
Better’s mortgage allows people to keep their Bitcoin or USDC in a “custody arrangement,” and warns that this scenario “may have tax implications” while also noting that converting that same crypto into dollars would result in a tax bill.
The pledged crypto cannot be used or modified while in this custody arrangement, Better said, and the loan repayment has the same interest rate and term as the mortgage—meaning borrowers can’t cash out or utilize their crypto for anything else while paying off their home loan.
The pitch then appears to largely be for crypto believers, with Better saying that borrowers “maintain exposure to Bitcoin appreciation” while also saving money upfront.
