Sydney-based digital currency exchange Block Earner has announced Australia's first Bitcoin-backed home loan, tapping into a potential market of around 3.9 million Australians who own cryptocurrency with personal holdings of $20-22 billion.
The announcement comes within months of Block Earner winning a court case against the Australian Securities and Investments Commission (ASIC) with the Full Federal Court determining it did not need a financial services licence to provide its fixed-yield, crypto-related Earner product to customers.
In response, the corporate watchdog has sought leave from the High Court to appeal the decision, requesting clarity on when interest-earning products and products involving a conversion of assets from one form into another are regulated. The court is yet to decide on a date to make its decision, which is expected some time in August.
Block Earner's new service allows crypto holders to use Bitcoin as security for deposit finance to enter the property market while maintaining their Bitcoin market exposure.
The company's thesis is that while property values have soared, they have become more affordable "when measured against stores of value with fixed, or slowly expanding supply and increasing institutional demand" such as Bitcoin and gold.
Block Earner highlights that for investors who have built long-term exposure to assets like Bitcoin, and historically gold, their relative purchasing power has significantly increased even amidst broader affordability pressures.
The company claims its crypto-backed home loan launch signals an emerging evolution in how the finance sector assesses creditworthiness, changing from traditional models that have prioritised salary, cash savings, and superannuation - a model it claims overlooks how younger Australians are building and holding wealth.
"This is a turning point for both property finance and digital assets," says Block Earner CEO and co-founder Charlie Karaboga.
"Crypto holders shouldn’t have to choose between holding Bitcoin and buying a home.
"We’re giving them a smarter option, a way to put their crypto to work without giving it up. This product isn’t just innovative, it’s inevitable."
Block Earner claims that by recognising Bitcoin as a legitimate asset class, it is broadening the definition of assessable wealth, without compromising borrower protection or lending discipline.
Although the product has only soft-launched, Block Earner notes early briefings have triggered strong interest from potential borrowers, accumulating over $110 million in mortgage demand.
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