BlockBeats News, on July 18, according to Cointelegraph, as Australian house prices continue to outpace income growth, a company has launched Bitcoin-backed loans, providing a new way for cryptocurrency holders to enter the real estate market without having to sell their assets.
This Wednesday, Block Earner launched Australia's first Bitcoin-backed home loan. Previously, the company had fought a court battle with regulators for over two years. The launch of this product was made possible by a federal court ruling in April this year, which determined that Block Earner's cryptocurrency lending products do not fall under 'financial products' according to the Corporations Act.
This ruling means that the company does not need to hold a financial services license to accept Bitcoin as collateral for home loans.
In this product, the borrower's crypto assets are held by the custody platform Fireblocks. Bitcoin will be used as collateral to secure cash loans up to 50% of the property value, supplemented by a standard mortgage structure to complete the financing.
