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Bitcoin Collateral Loans Debut in Australia
Summary: According to Cointelegraph, as Australian property prices continue to outpace income growth, a company has introduced Bitcoin collateral loans, offering 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 collateral home loan after a legal battle with regulators that lasted ...
According to Cointelegraph, as Australian property prices continue to outpace income growth, a company has introduced Bitcoin collateral loans, offering 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 collateral home loan after a legal battle with regulators that lasted over two years. The product's launch follows an April ruling by the Federal Court, which determined that Block Earner's cryptocurrency lending product does not fall under financial products regulated by the Corporations Act.
This ruling means the company can accept Bitcoin as collateral in mortgage loans without holding a financial services license.
In this product, borrowers' crypto assets are held by custody platform Fireblocks. Bitcoin is used as collateral to secure cash loans of up to 50% of the property value, complemented by traditional mortgage structures.
