Better Home surges 11% on crypto-backed mortgage launch with Coinbase
Fannie Mae-backed token mortgages enable Bitcoin, USDC as down payment collateral without forced liquidation
Better Home & Finance Holding Company shares soared 11% to $34.88 on Thursday after the fintech lender launched the first cryptocurrency-backed conforming mortgages in partnership with Coinbase, marking a watershed moment for integrating digital assets into traditional home lending.
The surge propelled the $575 million market-cap company above its 50-day moving average of $32.36 and 200-day moving average of $33.60 for the first time since early 2026, signaling a technical breakout on heavy trading volume. The stock remains well below its 52-week high of $92.69 but has more than tripled from its lows around $9.50 earlier in the year.
The product allows homebuyers to pledge Bitcoin or USDC stablecoins as collateral for mortgage down payments through a two-loan structure. Borrowers secure a traditional 15- or 30-year Fannie Mae-backed mortgage from Better, then take a separate loan backed by their digital assets to cover the down payment, according to the company's announcement.
Crucially, the structure eliminates forced liquidation risks. Market volatility does not trigger margin calls, and pledged crypto is only liquidated after 60 days of payment delinquency—the same standard as traditional conforming mortgages. This design addresses a core pain point for crypto holders who have historically faced either selling their assets (and triggering capital gains taxes) or accepting risky, expensive loan terms to access homeownership.
"This is a watershed moment for crypto mortgages," analysts noted, pointing to Fannie Mae's federal backing as a legitimizing factor that distinguishes the offering from previous attempts by smaller lenders like Milo, which has offered crypto mortgages since 2022 without government-sponsored enterprise support.
The partnership leverages Better's AI-native mortgage origination platform, Tinman®, combined with Coinbase's custody infrastructure. Coinbase One members who obtain mortgages through Better receive a rebate worth 1% of the mortgage value, capped at $10,000, to offset closing costs and fees.
For borrowers pledging USDC, Coinbase's rewards program can generate yield that helps offset mortgage payments, potentially reducing the net effective interest rate. Interest rates on both loans range from comparable to typical Fannie Mae mortgages to 1.5 percentage points higher—still significantly lower than traditional token-backed loans that have historically charged premiums of 3-5 percentage points above conventional mortgages.
The product launch follows a June directive from FHFA Director Bill Pulte requiring Fannie Mae and Freddie Mac to prepare to count cryptocurrency as an asset on mortgage applications. Fannie Mae's acceptance establishes underwriting standards that could accelerate adoption across the broader mortgage market, transforming crypto mortgages from a niche product into a mainstream offering.
Data from Coinbase's 2025 State of Crypto Report indicates younger investors are 2.5 times more likely to hold cryptocurrency than older generations, creating a significant demographic opportunity for lenders that can bridge the gap between digital asset wealth and traditional homeownership barriers.
Better and Coinbase plan to expand eligible digital assets over time to include tokenized equities, fixed income, and other tokenized real estate assets, positioning the platform to capture growth across multiple asset classes as tokenization accelerates in financial markets.
The stock's technical momentum is supported by strong fundamentals, with quarterly revenue growth of 51.3% year-over-year to $145.5 million in trailing twelve-month sales. However, the company remains unprofitable with earnings per share of -$12.18 and negative profit margins, reflecting the heavy investment phase typical of fintech disruptors targeting legacy industries.
Analysts maintain a price target of $40 on the shares, implying approximately 15% upside from current levels. The rating distribution shows one buy and two hold recommendations among analysts covering the stock, with no sell ratings. With a beta of 2.0, Better Home shares are highly sensitive to market movements, amplifying both gains and losses.
The partnership comes at a strategic moment for Bitcoin, which has pulled back more than 40% since October highs. The decline makes the product particularly attractive to holders seeking to avoid locking in losses while still accessing their crypto wealth for homeownership goals.
Institutional investors hold 53.5% of Better's outstanding shares, with insiders retaining 36.2% ownership, indicating strong alignment between management and shareholders as the company executes on its crypto-integrated mortgage strategy.