A Michigan couple, Joe and Amy, have closed on the first conventional, Fannie Mae-backed mortgage secured by Bitcoin as collateral, Coinbase announced Thursday.
Working with lender Better, the couple pledged Bitcoin to cover their down payment, avoiding a taxable sale while benefiting from Fannie Mae's safety net.
Crucially, Better's website states price swings will not trigger margin calls or liquidations. The product, first announced in March, will roll out to qualified borrowers nationwide in coming months, initially also accepting Circle's USDC stablecoin.
This development follows a shift in policy by Federal Housing Finance Agency Director Bill Pulte, who ordered the watchdog to recognize crypto held on centralized exchanges. Critics, including Senator Elizabeth Warren, have expressed concerns about risks to consumers and financial markets.