Block Earner has launched Australia's first Bitcoin-backed mortgage program, allowing homeowners to use BTC as collateral without selling assets or triggering capital gains tax. This follows a landmark Federal Court ruling that exempted the fintech from financial services licensing requirements for this product.
Borrowers can access up to 80% of a property's value based on their BTC collateral, with flexible repayment options including Australian dollars or Bitcoin. Interest-only payments are available for the first four years at rates between 9.5% and 12%, depending on loan-to-value ratios. However, if BTC's value drops significantly, borrowers must top up collateral within 30 days or face forced liquidation.
The company uses Fireblocks' institutional-grade custody for secure storage and reports overwhelming demand with over AUD 110 million in loan requests since announcement. CEO Charlie Karaboga hailed this as a "pivotal moment" bridging traditional and digital finance, with national expansion planned after successful roadshows in Melbourne and Brisbane.
This development occurs amid Australia's tightening crypto regulations focused on transparency, contrasting with recent AUSTRAC fines against platforms like Cointree. Notably, a February study revealed 32.5% of Australians own cryptocurrency, with 42.9% believing in its future widespread adoption.