Buying a home has long followed a familiar script: secure financing, search for the right property, negotiate a deal, and close with a down payment. That final step — often requiring tens of thousands of dollars in cash — has traditionally been one of the steepest barriers for aspiring homeowners.

Now, a new option is emerging that could reshape that process. Cryptocurrencies like Bitcoin, once relegated to speculative investing, are being positioned as a viable path to homeownership, offering buyers an alternative way to fund down payments without liquidating their holdings.

The mechanics of buying a house remain largely unchanged — preapproval, home shopping, inspections, closing — but the financial underpinnings are shifting. Down payments, typically ranging from 3% to 20% of a home’s price and paid into escrow at closing, may soon be financed not just with savings but with digital assets that, until recently, sat outside the traditional mortgage system.

In late March, Coinbase announced it is partnering with Better Home & Finance Holding Co. to roll out what it describes as the first large-scale crypto-backed mortgage product in the U.S. The loans, which would be originated and serviced by Better, carry the same backing as conventional mortgages supported by Fannie Mae, a cornerstone of the American housing finance system.

That Better Home & Finance Holding Co. is a partner in this effort is logical. The technology-enabled homeownership company was born out of the frustration of a man who, when applying for his first mortgage with his wife, ran into a gauntlet of inefficiency. “I remember thinking to myself: There must be a better way,” said Vishal Garg, the founder and CEO.

The concept is straightforward — instead of requiring borrowers to convert cryptocurrency into cash for a down payment — a move that can trigger taxes and sacrifice future gains — the new structure allows them to pledge their digital assets as collateral. That collateral then secures a separate loan used to fund the down payment, effectively creating a bridge between digital wealth and real estate.

According to Coinbase, borrowers in this system take on two loans at closing: a standard mortgage and a second loan tied to their crypto holdings. The company says both loans share the same interest rate and repayment schedule, resulting in a single monthly payment. The underlying cryptocurrency is held in custody for the duration of the loan and returned once it is repaid.

Millions of Americans now hold significant value in cryptocurrencies, yet those assets have largely been excluded from mortgage underwriting unless they are first converted into cash. That requirement forces a choice: sell and potentially incur taxes, or hold and delay purchasing a home.

Crypto-backed mortgages, Coinbase argues, remove that friction. By allowing digital assets to function as collateral, they expand the pool of resources buyers can draw from — a shift the company frames as a step toward broader financial inclusion.

The housing market has become increasingly difficult to enter, particularly for first-time buyers. Data cited by Coinbase from the National Association of Realtors shows the median age of a first-time homebuyer climbed to 40 in 2025, a record high driven by elevated mortgage rates, rising home prices and limited inventory. At the same time, housing costs have consumed a growing share of household income, squeezing affordability across the market.

For younger buyers, the challenge is especially acute. Many lack the accumulated savings that older generations built over decades of home equity growth. Yet they are more likely to hold wealth in newer forms — including cryptocurrencies — creating a disconnect between traditional financial measures and modern asset ownership.

Coinbase positions its new offering as a way to close that gap, describing it as part of a broader effort to integrate digital assets into everyday financial systems. The company has increasingly emphasized what it calls “real-world utility” for crypto, moving beyond trading and into lending, payments and now housing.

The expansion of crypto into the mortgage market follows years of coordinated efforts by the industry to gain legitimacy and influence policy in Washington. In 2022, Coinbase established a political action committee, part of a broader push to support candidates seen as favorable to digital asset innovation. The company had already been steadily increasing its lobbying presence, spending more than $1.5 million in 2021 alone.

Those efforts have since scaled dramatically across the industry. By 2024, crypto companies and affiliated groups had raised more than $78 million to support candidates aligned with their policy goals, according to figures released by Coinbase.

The political push has been accompanied by a broader narrative: that the existing financial system is outdated and inaccessible to many Americans. Coinbase has pointed to surveys suggesting widespread dissatisfaction, particularly among younger generations, who are less likely to believe the traditional system works in their favor.

The introduction of crypto-backed mortgages represents perhaps the clearest attempt yet to embed that infrastructure into a foundational pillar of American life: homeownership. The ability to leverage digital assets without selling them could unlock new opportunities for buyers who would otherwise be sidelined.

Coinbase emphasizes that mortgage terms would not fluctuate with crypto prices. Still, the long-term implications remain uncertain, particularly in a market already grappling with affordability challenges and economic pressure.

The initiative stands as a signal of how far cryptocurrency has come — from the fringes of finance to the doorstep of the American housing market.