Block Earner has introduced what it describes as Australia's first bitcoin-secured home loan, enabling borrowers to use crypto as collateral for deposit financing.
The structure is designed to offer an alternative for individuals seeking to enter the property market without selling their bitcoin. The product allows eligible borrowers to pledge their bitcoin holdings, held in institutional-grade custody, as security for a cash loan covering up to half the value of a property.
The remainder of the mortgage is financed through a traditional home loan issued by a separate lender. Borrowers have the option to repay the bitcoin-backed loan with cryptocurrency or cash and can exit the arrangement at any point without incurring penalties. According to Block Earner, the bitcoin security is not lent to third parties and remains in custody via Fireblocks.
The company’s offering arrives at a time when bitcoin is being increasingly treated by investors as a store of value. Bitcoin accounts for over half of Australians’ estimated AUD 20–22 billion in crypto holdings, with roughly 3.9 million Australians holding some form of digital asset in 2024. With the domestic crypto market projected to reach AUD 91.43 billion by 2025, Block Earner's approach reflects a growing interest in using such assets to support conventional financial objectives.
Evolving standards of financial assessment
The loan also marks a shift in how financial eligibility may be defined. Traditional lending criteria exclude younger individuals whose wealth is tied to digital assets. Block Earner officials suggested the model addresses this gap by treating bitcoin as assessable wealth. The product also allows for flexibility, enabling borrowers to offset repayments using their crypto holdings.
The approach coincides with broader industry developments. In the United States, the Federal Housing Finance Agency (FHFA) has indicated it is reviewing the possibility of allowing crypto assets to be factored into federal mortgage applications without the need for conversion into fiat currency.
A representative from Block Earner said the product was aimed at individuals who want to retain exposure to their digital assets while entering the property market. They characterised it as part of a larger movement towards incorporating digital assets into traditional financial strategies.
Initial interest in the product appears significant. Block Earner has reported over AUD 110 million in mortgage enquiries since the soft launch and is currently running a national roadshow, with events already held in Sydney and additional stops planned in Melbourne, Brisbane, and Perth.
