Block Earner launches the first Bitcoin-backed home loan in Australia

Fintech company Block Earner, based at #Sydney , has introduced a groundbreaking product: the first Bitcoin-backed home loan in Australia. This product allows cryptocurrency holders to use Bitcoin as collateral to fund their home deposit without having to sell their Bitcoin.

How it works and benefits

#BlockEarner will provide loans of up to 50% of the property value by locking the borrower's Bitcoin in a third-party custody wallet (Fireblocks). Repayments can be made in cash or crypto, and borrowers can pay off their loans early without penalty. This model allows borrowers to maintain exposure to Bitcoin, avoiding issues related to liquidation and taxes when selling assets. To manage Bitcoin's volatility, the loan is capped at a loan-to-value ratio (LVR) of 60%. If the price of Bitcoin drops significantly, Block Earner will notify the borrower 30 days in advance to adjust the LVR by making repayments in fiat currency, adding collateral, or depositing more Bitcoin. The company asserts that the house will never be at risk due to Bitcoin price fluctuations.

Block Earner reported over 110 million AUD (72.4 million USD) in early interest from borrowers during the testing phase. This launch signals a larger effort to reshape Bitcoin as a viable asset for property valuation amidst rising housing affordability pressures. #Australia