Digital asset fintech unveils Bitcoin-backed home loan

A digital asset fintech has unveiled Australia’s first Bitcoin-backed home loan, enabling cryptocurrency holders to use Bitcoin to afford the deposit for a property purchase.

With a mission to “bridge traditional finance and blockchain technology”, Block Earner’s latest product seeks to reshape conventional thinking about housing affordability by pricing in “inflation-resistant assets” such as Bitcoin and gold and allowing long-term asset holders to expand their purchasing power.

According to Block Earner data analysis, the average Australian home cost 627 Bitcoin or 350 ounces of gold in 2016; by 2024, this amount has fallen to 4.3 Bitcoin or around 170 ounces of gold.

Charlie Karaboga, CEO and Co-Founder of Block Earner, said the new home loan will spark an “evolution” in how the finance industry assesses credit and serviceability, which would consider how younger Australians are increasingly building their wealth via digital assets instead of prioritising salary, cash savings and superannuation.

“This is a turning point for both property finance and digital assets,” he said.

“Crypto holders shouldn’t have to choose between holding Bitcoin and buying a home. We’re giving them a smarter option, a way to put their crypto to work without giving it up. This product isn’t just innovative, it’s inevitable.”

The launch comes as the value of the Australian cryptocurrency market is estimated to sit at just under $91.5 billion in 2025, with approximately four million Australians holding crypto in 2024 and Bitcoin accounting for more than half of the $22 billion in personal crypto holdings.

The Bitcoin-backed home loan would work via the following framework:

1. Borrower applies via Block Earner’s platform
2. Bitcoin (BTC) is transferred into Institutional-Grade custody via global custodian, Fireblocks
3. A cash loan is issued against the Bitcoin, covering up to 50% of the property value – typically used to fund the deposit component
4. A traditional mortgage lender finances the remainder, through a standard home loan
5. The Bitcoin backed deposit loan could be borrowed interest-only for up to four years, with principal repayable in crypto, cash, or via refinancing at the end of the loan
6. Borrowers can exit the Bitcoin loan with Block Earner at any time without penalty

The digital asset fintech confirmed users of this strategy to enter the property market would not have to sell their Bitcoin to do so and would likely not have to pay lenders mortgage insurance (LMI), due to providing a deposit of more than 20 per cent.

“By recognising Bitcoin as a legitimate asset class, Block Earner is broadening the definition of assessable wealth, without compromising borrower protection or lending discipline,” a statement from the fintech said.

“Thanks to Bitcoin’s divisible nature, Block Earner can more precisely account for its value during the assessment process. Borrowers also have the flexibility to use their Bitcoin security to partially or fully offset loan repayments if they choose.”

Block Earner said they are finalising partnerships with mortgage lenders to finance the remaining portion of applicants’ Bitcoin-backed home loans, with the product expected to roll-out later this year.