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Australia Approves First Bitcoin-Backed Mortgage After Legal Win
In a groundbreaking move, Australia has introduced its first Bitcoin-backed mortgage after a court victory, paving the way for digital asset holders to use their cryptocurrency as collateral for home loans. The landmark ruling by the Federal Court clears the path for Block Earner to offer crypto-based lending services without breaching existing financial laws in the country.
This innovative financing structure allows borrowers to utilize up to 50% of a property’s value, secured with Bitcoin collateral. A traditional mortgage will then be used to fund the remaining portion of the home purchase. Fireblocks provides secure custody for the Bitcoin collateral, ensuring seamless handling of digital assets.
Australia’s approval sets a significant precedent in the crypto lending space and may influence other countries considering alternative housing market solutions. This development is particularly timely as Australia faces a severe housing affordability crisis, with average house prices nearly 10 times the country’s average household income.
Source: coincentral.com
