Highlights:
- Block Earner provides Bitcoin-backed home loans without requiring asset liquidation.
- BTC allows the borrowers to fund up to 50% of the property price.
- Crypto is under consideration by the U.S. regulators to be used for mortgage eligibility.
Block Earner has come up with a new way in which Australians can use Bitcoin to access the property market. According to the report, the Sydney-based fintech has now enabled crypto holders to use BTC as deposit financing collateral. The new lending option entails the borrowing of up to 50% of the value of a property.
The collateralization of Bitcoin takes place in a secure manner with the help of Fireblocks, a custodian of digital assets. This system guarantees the safety of assets, as well as keeping exposures of borrowers subject to the market performance. The loan operates on an interest-only basis for up to four years. There is additional flexibility, as borrowers can repay either in fiat or cryptocurrency.
The product was developed by Block Earner to help solve the increasingly affordable housing challenges. Increased property prices have exerted pressure on traditional deposits that depended on traditional savings. However, the firm claims long-term Bitcoin holders may now have an advantage. Using BTC rather than selling it keeps users in position and prevents tax occurrence.
We're coming for the Australian property market 🟠🏡
The product? Buy a home without selling your #Bitcoin.
📖 More via @CapitalBrief: Bitcoin-backed home loans are really coming to Australia this year 👉 https://t.co/BmAfCAAL4o#HomeLoans
— Block Earner (@blockearner) July 16, 2025
How the Bitcoin-backed Home Loan Works
To borrow the loan, the user has to deposit Bitcoin through Fireblocks, a safe custody service. Block Earner will then advance a loan up to 50% of the value of the purchase of the property. Customers must obtain the rest of the loan from a traditional lender.
This loan has a low maximum loan-to-value (LVR) ratio of 60% to ensure that risk is finite. In case the price of Bitcoin goes down considerably, borrowers are given a 30-day notice to rebalance. It can be done by paying back in fiat or topping BTC, or modifying collateral. In case the borrower does not act, the platform sells part of the Bitcoin. The model does not liquidate fully and does not subject the property of the borrower to the fluctuations of Bitcoin. The aim is to ensure the home loan application remains consistent even during the price fluctuation of digital assets.
Block Earner Attracts Strong Early Demand
Block Earner has captured strong early attention despite not having any official lending partners yet. More than AUD $110 million has been registered in borrower intent during the soft launch. The company estimates that there are approximately 10,000 potential customers to meet current asset requirements.
In Australia, more than 3.9 million citizens own cryptocurrency worth around $20 to $22 billion. Block Earner is seeking to utilize this growing number of users through the provision of new financial services. It considers crypto assets such as Bitcoin as a store of value with real-world utility.
Block Earner has continued working on products after a legal dispute with the Australian Securities and Investments Commission. The Full Federal Court ruled that the company does not require a financial license to offer fixed-yield products. The ruling is, however, still being appealed in the High Court, and the final ruling is anticipated in August.
In addition, crypto is gaining interest within real estate financing across the globe. In the U.S., housing regulators are looking at ways of using digital assets to facilitate the mortgage application process. Moreover, this would pave the way for broader use of crypto-secured home loans worldwide.
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