Crypto Enters the Mortgage Market Via FNMA-Eligible Loans (1)

Crypto is moving deeper into the US financial system — this time through the mortgage market.

Better Home & Finance Holding Co., a mortgage company, and Coinbase Global Inc. are launching a product that links digital assets to down payments on Fannie Mae–eligible home loans. The structure allows borrowers to pledge Bitcoin and Circle Internet Group Inc.’s USDC stablecoin as collateral for a separate loan used to fund the down payment, rather than selling those assets to raise cash.

The offering arrives as digital assets push further into the financial mainstream, following the blockbuster rollout of spot-crypto exchange-traded ...