Block Earner has launched an innovative home loan product in Australia, described as the country’s first bitcoin-secured mortgage. This offering allows borrowers to use their cryptocurrency assets as collateral for a cash loan.
This structure provides an alternative path for individuals who wish to enter or remain within the property market without having to sell their Bitcoin holdings. The scheme enables eligible applicants to secure a cash loan covering up to half of the value of a residential property by pledging their Bitcoin, which is stored in institutional-grade custody.
The remaining portion of the mortgage can be financed through traditional home loans arranged with other lenders. Borrowers have the flexibility to repay the crypto-backed loan using either cryptocurrency or cash and can terminate the arrangement at any time without facing penalties. According to Block Earner, the Bitcoin collateral remains in custody via Fireblocks and is not lent out to third parties.
This initiative comes during a period when Bitcoin is increasingly being recognized as a store of value by investors. Statistics indicate that over half of Australians’ estimated AUD 20-22 billion in crypto holdings are held in Bitcoin, with approximately 3.9 million Australians owning some form of digital asset by 2024. As the domestic crypto market is projected to reach AUD 91.43 billion by 2025, Block Earner’s approach highlights a growing trend towards utilizing such assets as part of conventional financial strategies.
Evolving Standards of Financial Assessment
The new loan product also marks a significant shift in how financial eligibility is evaluated. Traditional lending criteria often exclude younger individuals whose wealth is primarily tied to digital assets. Block Earner officials believe that this model addresses this gap by considering Bitcoin as assessable wealth, offering more flexibility for borrowers.
This approach aligns with broader industry trends. For instance, the Federal Housing Finance Agency (FHFA) in the United States has shown interest in exploring the inclusion of crypto assets into federal mortgage applications without converting them to fiat currency.
A representative from Block Earner stated that the product aims to provide an avenue for individuals who wish to maintain their exposure to digital assets while participating in the property market. They view it as part of a larger trend toward integrating digital assets more seamlessly with traditional financial practices.
Initial feedback on the product has been positive, with Block Earner reporting over AUD 110 million in mortgage inquiries since the soft launch. The company is currently conducting a national roadshow, with events already held in Sydney and further scheduled stops in Melbourne, Brisbane, and Perth.
