Better Mortgage and Coinbase Launch Token-Backed Home Loans with 1% Rebate for Onchain Wealth

Better Mortgage and Coinbase have launched a token-backed, conforming mortgage product to general availability, allowing borrowers to use digital assets as collateral for home loans. This integration bridges decentralized wealth with traditional real estate, offering a critical solution for crypto-native investors who previously faced liquidity hurdles when seeking conventional financing.

What was announced

The partnership introduces a first-of-its-kind mortgage product originated and serviced by Better Mortgage and powered by Coinbase. Designed to meet Fannie Mae guidelines, the product functions as a standard, conforming first lien mortgage. The general availability launch follows a successful pilot phase that generated over $260 million in projected loan volume during its waitlist period, where 60% of respondents indicated an intent to purchase a home within six months.

A central feature of the rollout is a financial incentive for Coinbase One members. Those approved for a loan by Better are eligible for a rebate equal to 1% of the mortgage value, capped at $10,000. This rebate is applied as a lender credit against closing costs and is reflected on the borrower’s closing disclosure. Importantly, the companies have expanded this 1% rebate beyond the initial token-backed product to include Better’s entire suite of home-financing options, such as standard mortgages, home equity lines of credit (HELOCs), and refinances.

The system allows borrowers to pledge their cryptocurrency holdings as collateral without the need to sell their assets, thereby avoiding immediate tax implications or the loss of long-term investment positions. The expanded offering became available to Coinbase One members on August 12, 2026, targeting a demographic where 76% of early interested parties were already part of the Coinbase loyalty ecosystem.

"This partnership has always been about expanding access to homeownership by meeting borrowers where they are. In 2025, high interest rates, record home prices, and limited inventory pushed the median age of a first-time homebuyer to 40. Coinbase counts millions of monthly users worldwide, and by allowing Coinbase One members to pledge crypto as collateral without selling their holdings, we’re opening a new path toward homeownership for a generation of borrowers whose wealth increasingly lives onchain."

Ziggy Jonsson, Chief Technology Officer at Better Mortgage.

The companies involved

Better Mortgage is a digital-first lender and a subsidiary of Better Home & Finance Holding Company. The firm has positioned itself as a disruptor in the mortgage industry by utilizing technology to streamline the application and underwriting process, moving away from the heavy manual labor traditional banks require. Better focuses on providing a range of products including purchase mortgages, refinances, and HELOCs.

Coinbase is a leading global cryptocurrency exchange and infrastructure provider. As a publicly traded entity (NASDAQ: COIN), it offers a suite of products for retail investors, institutional clients, and ecosystem partners. Its Coinbase One subscription service provides members with enhanced benefits, including zero trading fees and dedicated support, which now extends into real-world financial services like home lending. The involvement of Fannie Mae (the Federal National Mortgage Association) is significant, as it provides the necessary regulatory and secondary market framework to ensure these crypto-collateralized loans meet the standards required for traditional mortgage-backed securities, providing liquidity to the broader housing market.

What FF News has reported before

FF News has closely monitored the corporate governance and leadership shifts at Better Home & Finance. We recently reported on the Better Home & Finance Board Backs Interim CEO Daniel Lewis Amid Leadership Transition, highlighting the company's efforts to stabilize operations. This followed a period of internal friction where the Better Home & Finance Board Rejects Vishal Garg’s 'Revenge Campaign' to Regain CEO Role. These leadership updates provide essential context for the company's current strategic push into innovative product lines like crypto-backed lending.

What this means

This move signals a maturation of the digital asset class, transitioning crypto from a speculative instrument to a legitimate tool for traditional wealth building. By aligning with Fannie Mae guidelines, Better and Coinbase have effectively "de-risked" crypto collateral in the eyes of the broader financial system. This puts significant pressure on traditional retail banks that have been slow to recognize onchain wealth, potentially alienating a younger, affluent demographic. The success of this product hinges on market volatility; however, if the model proves stable, it sets a precedent for other high-value asset classes to be tokenized and used as collateral, further blurring the lines between DeFi and TradFi.