On July 18, according to Cointelegraph, as Australian housing prices continue to outpace income growth, a company has launched a Bitcoin-backed mortgage, providing a new way for cryptocurrency holders to enter the real estate market without selling their assets.
This Wednesday, Block Earner launched Australia's first Bitcoin-backed home loan. Previously, the company had been fighting a legal battle with regulators for over two years. The launch of this product was made possible by a Federal Court ruling in April this year, which determined that Block Earner's cryptocurrency lending products do not fall under the category of "financial products" under the Corporations Act.
This ruling means the company can accept Bitcoin as collateral for mortgages without needing to hold a financial services license.
In this product, the borrower's crypto assets are held by the custody platform Fireblocks. Bitcoin will serve as collateral, guaranteeing cash loans up to 50% of the property value, with financing structured using standard mortgage methods.
