The Changing Landscape of Mortgage Financing
Historically, Bitcoin holders faced challenges securing traditional mortgages due to having most of their assets in cryptocurrency. Cathie Wood, CEO of ARK Invest, suggests that recent policy shifts at government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac could encourage users to move Bitcoin to Coinbase as collateral for home loans.
Key Developments in US Mortgage Policy
This week, Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), announced via Twitter that Fannie Mae and Freddie Mac are exploring the inclusion of cryptocurrencies like Bitcoin in their mortgage evaluation frameworks. This marks a significant step toward integrating Bitcoin into traditional finance.
Cathie Wood's Perspective on Bitcoin Collateralization
In her recent Twitter post, Wood observed:
"Bitcoin hodlrs probably have a large percent of their net worth in crypto and therefore have not been able to qualify for a mortgage. I wouldn’t be surprised if they were to shift some of their bitcoin to Coinbase to serve as collateral for a once unattainable new home."
Community Response and Concerns
While this development excites many, some community members express skepticism:
- Self-Custody Preferences: Large Bitcoin holders often prefer managing their assets independently rather than depositing them on centralized platforms.
- Philosophical Conflicts: Critics argue that counting only platform-held Bitcoin contradicts cryptocurrency's decentralization ethos.
Coinbase's Bitcoin-Backed Lending Program
Since April 30, 2025, Coinbase has allowed US users (excluding New York) to borrow up to $1 million in USDC using Bitcoin as collateral—without selling their BTC.
How It Works
👉 Get instant loans with Bitcoin collateral
- Simple Process: Users request a loan via the Coinbase App's "Cash" tab, where BTC is automatically converted to cbBTC and locked in Morpho Protocol's smart contract.
- Fast Disbursement: Funds arrive in seconds with variable interest rates adjusted per Base blockchain block.
- Flexible Repayment: No fixed schedule; loans may be liquidated if collateral value drops below threshold.
The Role of Fannie Mae and Freddie Mac
These GSEs dominate over 70% of the US mortgage market by:
- Purchasing loans from private lenders to ensure liquidity
- Standardizing underwriting processes
(Comparable to Taiwan's "Housing Fund" but more market-driven.)
About FHFA Director Bill Pulte
Appointed in March 2025, Pulte brings pro-crypto stances:
- Grandson of Pulte Homes founder
- Holds $500K–$1M in BTC/SOL and Marathon Digital stock
- Advocates for digital asset policies via social media
FAQ Section
Q: Can I use other cryptocurrencies as collateral?
A: Currently, only Bitcoin is supported for Coinbase's USDC loans.
Q: What risks exist with BTC-backed mortgages?
A: Volatility may trigger liquidation if collateral value dips significantly.
Q: How does this differ from traditional home equity loans?
A: It eliminates credit checks but requires maintaining collateral ratios.
👉 Explore crypto-backed financing options
This innovation bridges crypto wealth with real estate access—potentially redefining homeownership for digital asset holders.