Bitcoin News Today: Australia Introduces Bitcoin-Backed Mortgages After Court Ruling

Block Earner, a company based in Australia, has introduced the country’s first Bitcoin-backed mortgage, providing a new avenue for cryptocurrency holders to enter the property market without liquidating their digital assets. This development comes after a prolonged legal battle with regulators, which culminated in an April Federal Court ruling. The court determined that Block Earner’s crypto lending products do not fall under the definition of “financial products” as outlined in the Corporations Act, thereby exempting the company from the need for a financial services license.

The new mortgage product allows borrowers to use their Bitcoin holdings as collateral, securing a cash loan for up to 50% of the property’s value. The remaining financing is complemented by a standard mortgage. The collateral tokens are safeguarded by the custody platform Fireblocks, ensuring the security of the digital assets. This innovative approach to creditworthiness shifts the focus away from traditional loan approval criteria, such as salary, cash, and superannuation, and instead leverages the value of the borrower’s cryptocurrency holdings.

This development is not isolated to Australia. In the US, institutions are also exploring ways to integrate cryptocurrency holdings into mortgage underwriting. On June 25, Federal Housing Finance Agency (FHFA) Director William Pulte directed Fannie Mae and Freddie Mac to consider crypto holdings on regulated centralized exchanges as reserve assets for mortgage risk assessments. This move aims to recognize the financial value of cryptocurrency in the mortgage evaluation process, potentially expanding access to home loans for digital asset holders.

Furthermore, a new bill introduced in the US House of Representatives seeks to mandate mortgage agencies to update their guidelines, acknowledging cryptocurrency holdings on regulated exchanges as part of a borrower’s financial profile. If enacted, this legislation would enable crypto to be considered in mortgage eligibility without the need for conversion to dollars, thereby broadening the accessibility of home loans for those who hold digital assets.

Both Australia and the US are grappling with severe housing crises, making homeownership increasingly unattainable for many citizens. In Australia, home prices average nearly 10 times the typical household income, with Sydney being particularly expensive, where homes cost nearly 14 times the median income. Similarly, in the US, median home prices reached over $420,000 in 2024–2025, roughly seven times the median household income. This has led to a surge in homelessness, with over 653,000 unhoused people recorded in a single night in January 2023, the highest number since tracking began in 2007.

Despite the soaring home prices, the value of Bitcoin has increased by nearly 87% over the past twelve months, making it a more attractive option for those looking to enter the property market. This rise in Bitcoin’s value relative to home prices presents an opportunity for cryptocurrency holders to leverage their digital assets to secure home loans, potentially alleviating some of the financial pressures associated with the housing crisis.