Breakthrough in Financial Innovation: Australia Launches World’s First Crypto-Backed Mortgage

Australia has made a groundbreaking move in the world of finance by launching its first-ever crypto-backed mortgage, allowing homeowners to use their Bitcoin assets as collateral. This innovative solution is expected to revolutionize the way people purchase homes without having to sell their cryptocurrencies.

According to reports, the interest rate for this new loan product starts from 9.50% per annum, with a loan-to-value ratio (LVR) of 40%. This means that borrowers can borrow up to 40% of the value of their Bitcoin holdings as collateral.

The launch comes after a successful soft launch, which saw a staggering $110 million in mortgage demand. The company behind this initiative, Block Earner, had faced a setback earlier when it lost an appeal against ASIC’s civil penalty proceedings in early 2024. However, it has since bounced back with a vengeance, launching the Bitcoin-backed mortgage product.

Industry experts have hailed this move as a game-changer for the sector, opening up new opportunities for people to own homes without having to part with their precious cryptocurrencies.

Source: www.crypto-news-flash.com