Block Earner, an Australian fintech firm, has raised AU$8 million (US$5.04 million) to develop a Bitcoin-backed home loan deposit product.

The company operates as a cryptocurrency exchange and offers lending products that use digital assets like Bitcoin as collateral.

The new system will let customers borrow up to 60% of a property’s value for use as a deposit, with interest set at 9.5%, repayable in Australian dollars, Bitcoin, or both.

Third-party lenders will provide the final mortgage, while borrowers must provide more cryptocurrency as collateral than the loan amount.

The series A round was led by CMCC Global’s Titan Fund, with participation from King River Capital.

This funding comes after Block Earner won an appeal against a court case brought by the Australian Securities and Investments Commission regarding a separate product.

🔗 Source: SmartCompany

🧠 Food for thought

1️⃣ Conservative loan ratios reflect Bitcoin’s persistent volatility challenges

Block Earner’s requirement for $333,000 in Bitcoin collateral to secure a $200,000 home deposit reflects the cryptocurrency’s documented price instability.

Bitcoin remains three to four times more volatile than major equity indices, making conservative loan-to-value ratios essential for lenders1.

The company’s 60% property value lending limit, combined with significant over-collateralization, demonstrates how crypto lenders must account for rapid price swings that could quickly erode collateral value.

This conservative approach contrasts with traditional mortgage lending, where borrowers typically provide 10-20% deposits, highlighting the operational complexity of using volatile assets as loan security.

The 30-day grace period for borrowers to top up collateral during Bitcoin price drops shows how crypto-backed lending requires active portfolio management rather than the “set and forget” approach of conventional mortgages.

2️⃣ Australia’s crypto lending market shows competitive rates despite regulatory uncertainty

Block Earner’s 9.5% interest rate positions it competitively against other Australian crypto lenders, with platforms like Vield charging 13% for Bitcoin-backed loans2.