Block Earner Launches First Crypto-Backed Mortgage in Australia Using Bitcoin as Collateral

• Bitcoin (BTC) holders in Australia can now own a home without selling their assets as Block Earner finally unveils a home loan product
• Reports suggest that the interest rate starts from 9.50% per annum with a 40% loan-to-value ratio (LVR)

Sydney-based financial technology (FinTech) company Block Earner has officially launched the first Bitcoin-backed home loan in Australia, giving crypto holders a new way to own properties without selling their assets. This is expected to address the worsening housing crisis in the country triggered by the rise in property interest among foreign buyers, amidst the weakening AUD.

Explaining the importance of this initiative, Block Earner highlighted that the country’s traditional and affordable metrics, which are based on wage growth and Australian dollar figures, confirm that the housing situation has gone from bad to worse. Pricing homes in inflation-resistant assets like Bitcoin and Gold, according to the statement, is the only effective way to increase the relative purchasing power of these holders.

To better appreciate this move, Block Earner disclosed that an average Australian home cost around 627 BTC or 350 ounces of gold in 2016. By 2024, this had reduced to 4.3 BTC or 170 ounces of gold. Most importantly, the Bitcoin-backed home loan product is said to prioritize an inclusive and asset-backed path for different groups of people, ranging from Bitcoin holders to homeowners.

Upon reviewing the details, we found that loans would be approved within 24 hours. On top of that, there would be no early repayment fees. Customers who access this loan facility would be able to pay interest only for up to four years.

The interest rate starts from 9.50% per annum with a 40% loan-to-value ratio (LVR). The comparison rates would be 11.93% per annum with 80% LVR. Also, there would be a fixed rate of 11.5% per annum with LVR of 50% while comparison with a fixed rate of 12.17% per annum goes with 80% LVR.

According to the company, its initial soft launch recorded a staggering $110 million in mortgage demand. Meanwhile, the “road to this launch” was not a smooth one.

Block Earner Wins an Appeal to Hit the Ground Running With Its Loan Product

In early 2024, the Federal Court of Australia ruled that Block Earner engaged in unlicensed financial services conduct in its crypto-backed “Earner product” after the Australian Securities and Investment Commission (ASIC) commenced civil penalty proceedings against them in 2022. In April 2025, the court sided with Block Earner in an appeal that challenged the earlier ruling, days after the country denied the crypto reserves rumours.

In the ruling, Justices David O’Callaghan, Wendy Abraham, and Catherine clarified that the firm’s crypto-linked fixed-yield earning product is not a financial product. Not only that. It does not qualify as a managed investment scheme or even a derivative under the Corporations Act.

As detailed in our earlier post, this landmark decision cleared Block Earner to go ahead with the Bitcoin-backed loan home product without requiring a financial services license. Amidst the backdrop of this, Australia has also embraced a pro-crypto strategy to regulate the industry under existing financial laws, as discussed earlier.

Block Earner’s initiative follows the recent report that Coinbase has launched Bitcoin-backed loan services to its US-based customers. As explained in our previous blog post, qualified users can borrow up to $1 million in USDC without the need to sell their Bitcoin holdings. In a different report, we disclosed that Swiss Bank Sygnum now accepts staked SOL as collateral for fiat loans.