Tokenization: Fannie Mae Partners With Coinbase To Allow Crypto And Stablecoin Payments For Home Loans And Mortgages
What could go wrong? This is what I have been warning would happen to housing for some time...
Earlier this week, government-backed mortgage lender Fannie Mae announced a partnership with Coinbase, one of the world’s crypto exchanges, to allow for home loans and mortgages backed by cryptocurrencies and stablecoins.
In a news release published on March 26th, Coinbase described this as “a new path to homeownership” (emphasis mine):
“Millions of Americans now have a new path toward homeownership. With Coinbase powering Better’s new crypto-backed mortgages, prospective homeowners will soon be able to use the Bitcoin or USDC in their Coinbase accounts to fund their cash down payments. These crypto-backed mortgages will be originated and serviced by Better, and will benefit from the same backing of Fannie Mae – one of the leading sources of mortgage financing in the United States – as other conforming mortgages.
“For the tens of millions of Americans who hold digital assets, crypto-backed mortgages create an option to secure housing in a housing market where access has become increasingly constrained.”
With so many Americans locked out of the housing market, Coinbase says tokenizing real estate will alleviate that.
“Homeownership is one of the most powerful engines of generational wealth, but access to it is getting harder,” the company says. “Traditional homeownership favors older generations who benefit from decades of compounding equity growth that can outpace the growing divide between housing costs and income.”
The WinePress has previously detailed how so many Americans have been effectively locked-out, a persistent problem that will only get worse unless policy is changed.
In January, President Donald Trump said during a cabinet meeting that he does not want housing prices to go down but to continue to go higher, claiming that he wants to preserve the wealth existing owners have created for themselves, while providing other options for younger buyers, presumably something like a 50-year-mortgage Trump has proposed.
Coinbase goes on to explain the process and the purported benefits:
“Crypto-backed mortgages change this by solving a key friction impacting all of the above: liquidity. These mortgage types allow crypto holders to secure a home loan without needing to have 100% of the required cash upfront, and without being forced to liquidate their crypto holdings. By enabling borrowers to pledge their digital assets in the mortgage underwriting process, onchain wealth translates into real-world access – expanding the pathways to homeownership while preserving long-term investment positions.
“Crypto-backed mortgages function just like a conventional home loan, with the same legal protections. The key difference is simple: instead of needing to come up with cash for the down payment, borrowers can pledge their crypto holdings as collateral for a separate loan that’s used to cover the down payment. This is a major step forward for crypto’s real-world utility, with this new offering providing the unique benefit of added stability and government backing.
“With this process, you get two loans at closing. The first is a standard Fannie Mae mortgage on the home. The second is used to fund your cash down payment, and is secured by the crypto that you pledge. One of the unique things about Better’s structure is that both loans share the same interest rate and amortization term, so you only have to manage one combined monthly payment – a true market first.
“For example, if you want to buy a $500K home, you can pledge $250K in BTC and get a $100K loan to cover your cash down payment. Your crypto stays in custody in Better’s Coinbase Prime account for the life of the loan and is returned to you once the loan is repaid. Further, when a borrower chooses to pledge their BTC, the terms of the loan remain unaffected by Bitcoin’s price volatility; if the market fluctuates, your mortgage terms remain the same.
“Stablecoins are now widely used for global payments and treasury management. Tokenization is bringing credit funds, sovereign issuances, and capital markets onchain. Institutional adoption of crypto continues to expand. Housing is the next logical frontier.
“These new crypto-backed mortgages are the first step in integrating crypto into the core plumbing of the U.S. housing finance system. This is what the Everything Exchange vision looks like in practice: not just trading every asset class onchain, but making those assets usable in the real world. It’s proof that crypto assets can interoperate with regulated, government-backed systems, enabling greater economic freedom and expanding access to the American dream.”
In an interview with CNBC, Vishal Garg, CEO of Better, noted:
“We have now finally created the infrastructure rails to enable any tokenized asset in America to be able to be pledged to help someone afford to buy a home. It starts with bitcoin, starts with [USD Coin], but going forward, it can be Apple stock or Amazon stock, or any publicly traded mutual fund, bond fund, something that you might hold in your IRA, you’re going to be able to pledge that to buy a home.”
Max Branzburg, head of consumer and business products at Coinbase, added:
“Token-backed mortgages are a major first step to unlocking homeownership for the younger generations that have struggled with barriers to saving for a traditional down payment.”
The downside, CNBC pointed out, is that Americans who go down this path will then have to pay on two loans at once, which means it is more expensive.
The Wall Street Journal also noted this as well:
The new mortgage product works like this: A home buyer gets a traditional 15- or 30-year Fannie-backed mortgage from Better. Instead of making a cash down payment, the buyer gets a separate loan, backed by either bitcoin or USDC, a popular stablecoin.
Paying interest on a second loan instead of making a cash down payment can increase the overall cost of homeownership significantly. The interest rate on both loans would range from comparable to typical Fannie Mae mortgages to 1.5 percentage points higher.
But Garg says Better offers cheaper rates than its competitors, and the rates on the loans and the terms on those loans are the same. “You’re keeping the appreciation on your asset in the instance of USDC, the holdings that you hold in USDC and the yield you get from that can be used to offset the interest payments on the mortgage,” Garg said.
The WSJ cited a 2025 Redfin survey that found that over 10% of Millennials and Zoomers sold crypto holdings in order to fund their down payments.
Ultimately, this move is the next major step for wider tokenization of real estate.
“I don’t see how the entire real estate industry won’t be on the blockchain within 10 years,” claimed Tony Giordano, a real estate agent who specializes in cryptocurrency, said on the Property Play podcast.
AUTHOR COMMENTARY
If you have been following my reports on tokenization and the housing crisis in the U.S., I have repeatedly said that tokenization would be introduced to unlock the housing market because tokenization allows for “fractional ownership,” the ability to split assets into multiple pieces and digital contracts. Coinbase and Fannie Mae have just offered that.
Moreover, the language used by Coinbase is the same language we have heard BlackRock CEO and World Economic Forum co-chair Larry Fink use to describe tokenization — the talk of updating the “plumbing” of the financial system and the so-called “new physics of money.” Keep in mind also that we discussed Coinbase CEO Brian Armstrong’s conversations with Larry Fink, who have both said on stage together that “tokenization is the future.”
Read some of my tokenization reports here:
As I have explained in these reports, “fractional ownership” is not ownership at all; it is forever renting. That’s why these people — central banks, BlackRock and other private interests — are salivating to tokenize everything because ownership is taken away, and then they can control what people buy, spend, sell, and own. “You will own nothing and be happy.”
Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.
And let’s not forget that Trump and his sons own a company, World Liberty Financial, that produces and manages its own stablecoin called USD1; and Trump’s sons have said that the dollar needs an “upgrade”
This is why the Trump administration and the Federal Reserve are working to keep the housing market inflated and out of reach, because it will force more people to tokenize real estate to get into a house and others over time, who have to default or refinance in the next several years because of the chaos and economic meltdown.
Having said all of that — you want to talk making the housing crisis even worse? Well, this will do it. Crypto and Bitcoin as we know are incredibly volatile, and stablecoins under the Genius Act are backed by dollars and treasuries; two depreciating assets the world is dumping and de-dollarizing, especially now none more so than ever before because of the war in Iran. This is going to be a mess, by design.
None of this is a mistake, none of it is a comedy of errors: this is deliberate.
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