
Australia Launches First Crypto-Backed Mortgage Using Bitcoin as Collateral
Block Earner has revolutionized the real estate sector in Australia by launching the country’s first crypto-backed mortgage product, utilizing Bitcoin (BTC) as collateral. This groundbreaking initiative empowers cryptocurrency holders to own a home without liquidating their assets.
As per the official announcement, Block Earner’s innovative loan product will cater to Australians who are unable to access traditional mortgages due to strict lending criteria and rising housing costs. The company has ensured that the application process is streamlined, with approvals guaranteed within 24 hours.
A significant aspect of this mortgage product is the absence of early repayment fees. Additionally, homeowners can opt for an interest-only payment plan for a maximum period of four years. Notably, interest rates start from 9.50% per annum with a loan-to-value ratio (LVR) capped at 40%.
The development comes as Australia grapples with a worsening housing crisis triggered by an influx of foreign buyers and a weakening Australian dollar. This new product is designed to provide a path forward for Bitcoin holders, who may have been previously excluded from accessing traditional mortgage options.
The launch marks the culmination of Block Earner’s efforts, despite facing regulatory hurdles earlier in 2024 when it faced off against the Federal Court of Australia. The court initially ruled that the company engaged in unlicensed financial services with its “Earner product” after ASIC initiated civil penalty proceedings against them in 2022.
In a dramatic turn of events, the same court later supported Block Earner’s appeal in April 2025, conclusively determining that the firm’s crypto-linked fixed-yield earning product is not a financial product. Furthermore, it does not qualify as a managed investment scheme or a derivative under the Corporations Act.
Source: www.crypto-news-flash.com