SYDNEY, Australia–With the FHFA in the U.S. recently announcing it is exploring how cryptocurrencies might be used to qualify for a mortgage, in Australia a company has introduced a Bitcoin-backed mortgage.
The company Block Earner launched the country’s first Bitcoin-backed home loan after fighting with regulators in court for over two years, according to CoinTelegraph. A federal court ruled in April that the company’s crypto lending products did not qualify as “financial products” under the Corporations Act, which cleared the way, as it does not need a financial services license in order to offer Bitcoin as collateral in home loans.
Through the product, borrowers’ collateral tokens are secured by custody platform Fireblocks, according to CoinTelegraph. The Bitcoin is used to secure a cash loan for up to 50% of the property’s value, with a standard mortgage complementing the financing.
