iscover 
The partnership, struck between digital asset fintech Block Earner and brokerage Century 21 Home Loans, will allow borrowers to use bitcoin as security for a loan covering their mortgage deposit, avoiding LMI, alongside a standard home loan from a traditional lender.
The partnership follows the Australian Securities and Investments Commission (ASIC) granting Block Earner a credit licence, making it the first digital asset platform to receive one.
Founded in 2021, Block Earner launched a pilot for Australia’s first bitcoin-backed home loan in July 2025, which has since attracted more than $550 million in waitlist demand.
How does it work?
Available to owner-occupiers and investors, eligible borrowers can access a standard home loan arranged through Century 21 Home Loans, subject to lender approval and with no exposure to digital assets, alongside a separate bitcoin-backed deposit loan from Block Earner.
The initial LVR on the new product will be capped at 50 per cent, with the Block Earner platform providing real-time monitoring and notifying borrowers if thresholds are approached.
If movements in the price of bitcoin cause the LVR to rise, borrowers can restore their position by adding further bitcoin collateral or making a cash repayment. If the default notice threshold is reached, borrowers will have a 30-day cure period to bring the LVR back within the required level before any enforcement action can be taken.
Any subsequent sale of collateral will be limited to the amount required to address the breach and will only occur after the cure period has lapsed. Block Earner said none of its existing borrowers experienced loan insolvency during the recent bitcoin market correction.
Crypto in home loans
Block Earner’s crypto-backed deposit loan reflects Australians’ growing ownership of cryptocurrency, as well as interest in using it for borrowing.
According to the Independent Reserve Cryptocurrency Index, around 6.2 million Australians, or roughly 31 per cent of the adult population, now own or have owned cryptocurrency.
Young people are leading the trend, with 53 per cent of Australians aged 25–34 owning crypto, while Baby Boomer ownership has grown from 5.77 per cent to 8.2 per cent.
Expert Market Research estimated the value of Australia’s crypto market at $93.4 billion in 2025, with bitcoin accounting for over half of holdings.
Despite this, facilities for using crypto to back mortgages remain limited.
Brokers speaking to Broker Daily have flagged crypto’s regulatory uncertainty and volatility, along with limited appetite among major lenders, as barriers to widespread adoption.
Nonetheless, crypto-backed mortgages have gained more traction in overseas markets such as the US, and Block Earner’s co-founder and CEO Charlie Karaboga said the partnership was a sign of things to come in Australia.
“This partnership reflects a practical evolution in how digital assets can be incorporated into mainstream finance, supported by regulated lending practices, conservative credit settings and active monitoring to manage volatility responsibly,” he said.
“Recent Bitcoin price volatility reinforces the need for structures that allow holders to access liquidity without selling long-term assets at cyclical lows.
“With proposed CGT changes making liquidity increasingly important, this partnership helps borrowers meet lending requirements while preserving long-term asset exposure.”
Block Earner is also progressing an Australian Financial Services Licence as part of its broader regulatory plans ahead of the implementation of Australia’s Digital Assets Framework.
These reforms are expected to extend the financial services licensing regime to parts of the digital asset sector, as regulators continue developing clearer oversight for digital asset businesses operating within Australia’s financial system.
Many Australians also remain optimistic about the long-term future of digital assets, with Independent Reserve reporting that two in five Australians believe crypto will eventually become widely accepted for everyday use.
Calling the two companies’ venture an “exciting development”, Sam Panebianco, Century 21 Home Loans senior credit and policy adviser, said the partnership marked the next stage for bitcoin in banking.
“This is a fast-growing space and one we want to make sure is done right. A market-leading, customer-centric approach, supported by disciplined practices, should open the door for Bitcoin holders across Australia to use their Bitcoin to buy their first home or investment property,” Panebianco said.
[Related: Finsure targets AI-enabled fraud with new CRM integration]
Want to see more stories from trusted news sources?Make Broker Daily a preferred news source on Google.
