• Block Earner has launched Australia’s first Bitcoin-backed mortgage after winning a Federal Court case that removed licensing requirements.
  • The US is considering legislation to count crypto holdings on regulated exchanges toward mortgage eligibility.

In a landmark move for the Australian property market, fintech company Block Earner has introduced the nation’s first Bitcoin-backed mortgage, offering crypto holders an alternative route to homeownership.

The launch follows a two-year legal battle, culminating in an April Federal Court ruling that deemed Block Earner’s crypto lending products as not qualifying as “financial products” under the Corporations Act. This decision exempted the company from requiring a financial services license to offer the product.

The mortgage allows borrowers to use Bitcoin as collateral for up to 50% of a property’s value, with the digital assets held securely by the custody platform Fireblocks. A traditional mortgage covers the remaining financing. This approach offers a new standard of creditworthiness beyond salary and superannuation, targeting individuals with significant digital assets.

Parallel Developments in the United States

Australia isn’t alone in rethinking mortgage models. In the US, momentum is growing around integrating crypto into home loan underwriting. On June 25, FHFA Director William Pulte instructed Fannie Mae and Freddie Mac to explore recognizing crypto on centralized exchanges as reserve assets in mortgage applications.

Further, a bill introduced in the US House of Representatives on Monday seeks to mandate mortgage agencies to include crypto in borrower profiles. If passed, it would eliminate the need to convert digital assets into fiat for mortgage eligibility.

Both countries are facing deepening housing crises. In Australia, home prices average nearly 10 times the median income, and in Sydney, it's close to 14. The US follows closely, with home prices hitting over $420,000 in 2024–2025, approximately seven times the national median income.

With Bitcoin up 87% over the past year, crypto-backed lending may provide a financial bridge for aspiring homeowners previously priced out of the market.

Edited by Harshajit Sarmah