18.07.2025 09:27
Australian homeowners can now leverage their Bitcoin holdings to secure home loans without liquidating their crypto assets or incurring capital gains tax. This innovative financing option, made possible by a recent court victory for Sydney-based fintech startup Block Earner, eliminates previous licensing hurdles. The ruling allows Block Earner to offer BTC-backed mortgages, effectively realizing a long-held dream for many cryptocurrency investors.
Block Earner's offering provides borrowers with access to institutional-grade custody and flexible repayment schemes. Loans are available up to 80% of a property's value, based on the collateralized Bitcoin. Repayments can be made in Australian dollars or Bitcoin, with an interest-only option available for the initial four-year period. Importantly, borrowers maintain full ownership of their Bitcoin, avoiding potential capital gains tax liabilities.
However, this novel financing method isn't without risk. Borrowers must maintain a specified loan-to-property value (LVR) ratio. Should the value of Bitcoin fall precipitously, resulting in the LVR exceeding the pre-defined threshold, borrowers have a 30-day window to add collateral. Failure to do so may trigger the forced sale of a portion of their Bitcoin holdings. Security of the Bitcoin is paramount, with Block Earner utilizing Fireblocks, an institutional-grade custodian that strictly prohibits lending to third parties.
The overwhelmingly positive market response to Block Earner's offering underscores a significant shift in the Australian real estate landscape. Since its launch, the company has already received loan applications totaling over A$110 million. Block Earner's CEO, Charlie Karaboga, and COO, James Coombes, hailed this as a significant milestone, bridging the gap between traditional finance and the burgeoning digital asset ecosystem. This development highlights Australia's evolving approach to cryptocurrency regulation, simultaneously embracing innovation while maintaining a cautious approach to risk management.
