Australia launches first Bitcoin-backed home loan after Block Earner wins regulator fight

Australia has officially launched its first Bitcoin-backed home loan product, marking a major breakthrough in the integration of crypto with traditional real estate financing.

Fintech firm Block Earner is behind the innovation, having won a long-running legal battle with the Australian Securities and Investments Commission, which challenged the company’s right to offer the product without a traditional financial services license. After successfully arguing that its crypto-backed offerings didn’t require such a license, Block Earner is now moving forward with its pioneering home loan platform.

With this product, Australians can use their Bitcoin (BTC) holdings as collateral to secure home loans without having to liquidate their crypto assets.

“Traditional, affordability metrics, based on wage growth and Australian dollar figures, suggest a worsening housing crisis. But when homes are priced in inflation-resistant assets such as Bitcoin and gold, the picture shifts, and long-term holders of these assets may find their relative purchasing power has increased,” Block Earner said.

Meanwhile, the United States is also making moves toward integrating crypto into mortgage lending. On June 25, the Federal Housing Finance Agency directed mortgage giants Fannie Mae and Freddie Mac to develop frameworks for including verified crypto assets in single-family mortgage risk assessments.

Until now, crypto needed to be converted to fiat to count toward mortgage applications. Under the new directive, digital assets held on regulated U.S. exchanges could be considered part of borrower reserve, potentially opening a new path to homeownership for crypto holders. However, the directive excludes self-custodied assets, which may limit participation from crypto-native users.

On July 14, a new bill H.R.4374 was introduced in the U.S. House of Representatives, aiming to mandate mortgage agencies to revise their policies to include crypto held on regulated exchanges as part of a borrower’s financial assets. If approved, the bill would enable crypto holders to use their digital assets to qualify for mortgages without having to convert them into U.S. dollars.