Fannie Mae - the largest mortgage agency in the United States with a $4.7 trillion portfolio, will accept cryptocurrency as mortgage collateral for the first time in history. The program partners are crypto exchange Coinbase and mortgage company Better Home & Finance, which jointly created the first conforming crypto-mortgage product backed by Bitcoin and USDC.
How the Crypto Mortgage Works
The mechanism differs at its core from typical crypto lending. A borrower opens a Coinbase account and applies for a standard mortgage through Better Home & Finance. Simultaneously, they take out a second loan backed by Bitcoin or USDC, which covers the down payment on the primary mortgage.
For example, when purchasing a $500,000 home, a borrower can pledge $250,000 in Bitcoin and receive a $100,000 loan for the down payment. The crypto assets are held in a Coinbase Prime custodial account for the entire loan term and returned upon full repayment.
The loan is structured as a conforming mortgage that meets Fannie Mae standards. This means the crypto-mortgage receives the same protective mechanisms and regulatory requirements as traditional mortgage products, including insurance and standard foreclosure procedures.
No Margin Calls - the Key Advantage
The crucial difference from existing crypto loans is the complete absence of margin calls. If Bitcoin's price crashes by 50% or more, the mortgage terms remain unchanged and no additional collateral is required. The risk of collateral liquidation only arises after 60 days of payment delinquency, under the same conditions as conventional mortgages.
This deeply changes the rules for crypto investors. Instead of having to sell Bitcoin for dollars and lose their position before a potential rally, they maintain exposure to the asset while simultaneously gaining access to housing finance.
50-60% Volatility Haircut
Federal Housing Finance Agency (FHFA) Director William Pulte issued a directive to Fannie Mae and Freddie Mac back in June 2025 to accept cryptocurrency as mortgage reserves without forced liquidation. However, the agency introduced a so-called "volatility haircut" - a 50-60% discount on the market value of crypto assets.
In practice, this means $100,000 in Bitcoin counts as only $40,000-$50,000 for reserve requirement purposes. Additionally, a cap has been set on the share of cryptocurrency in a borrower's total reserves, though the exact percentage has not yet been disclosed.
Crypto assets must be held on U.S.-regulated centralized exchanges, currently Coinbase, Kraken, and Gemini. Cold wallets and self-custody are not yet accepted, limiting participants to those willing to entrust custody to a third party.
Market Impact at Scale
Fannie Mae backs approximately 30% of all mortgages in the United States. Integrating cryptocurrency into the world's largest housing market sends a powerful signal to the entire financial industry. By various estimates, over 50 million Americans hold cryptocurrency, and a significant portion of them will now be able to use these assets to obtain mortgages.
The decision also strengthens the position of stablecoins in traditional finance: Circle's USDC became one of only two eligible assets alongside Bitcoin. This proves regulators' growing confidence in stablecoins as a reliable financial instrument that is already finding practical applications beyond the crypto market.
Outlook and Limitations
The full list of eligible cryptocurrencies, detailed valuation methods, and risk parameters have not yet been disclosed. Freddie Mac - the second-largest U.S. mortgage agency, is expected to launch a similar program in the coming months, further expanding access to crypto-backed mortgages.
Fannie Mae's crypto-mortgage is a landmark step for institutional adoption of digital assets. Cryptocurrency is integrating not only into institutional investment portfolios but also into everyday financial products for millions of Americans. For the market, this represents yet another powerful argument in favor of long-term holding of digital assets rather than selling them.
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