Australian fintech Block Earner has introduced the country’s first Bitcoin-backed home loan product, enabling borrowers to leverage their cryptocurrency holdings as loan collateral without selling their assets.
The novel loan structure allows individuals to borrow up to 50% of a property’s value using Bitcoin as the sole security, facilitating significant capital access while digital assets remain invested. Loan terms have a maximum duration of four years.
To address asset safety concerns, borrowers’ Bitcoin collateral will be securely held by the institutional-grade custody provider Fireblocks throughout the loan period.
The company acknowledges significant risks inherent in this model, primarily stemming from Bitcoin’s well-documented price volatility. A substantial decline in Bitcoin’s value could trigger margin calls requiring additional collateral or loan repayment. Evolving regulatory frameworks surrounding cryptocurrency in Australia may also impact product availability and structure.
Block Earner suggests the initiative could broaden access to property financing for crypto holders and accelerate the convergence between cryptocurrency markets and traditional financial services.