Block Earner launches crypto-backed loan platform

Block Earner has launched Australia's first crypto-backed lending platform, which utilises Fireblocks' institutional-grade custody technology to safeguard clients' assets.

The collaboration reflects a growing demand for fintechs and digital asset businesses for secured infrastructure that enables further development of regulated financial products while reducing operational complexity.

Fireblocks head of Asia Pacific Amy Zhang said more businesses are seeking institutional-grade technology to navigate the next phase of innovation.

"As digital assets become increasingly embedded in financial services, it is clear that institutional-grade infrastructure is the foundation for innovation," Zhang said.

"We're proud to support Block Earner as it brings Australia's first crypto-backed lending platform to market and demonstrates that security isn't just a nice-to-have, but enables businesses to scale with confidence, from launching new products to expanding into new jurisdictions."

The new platform allows customers to borrow up to $5 million within 24 hours of approval using cryptocurrency as security, with no lock-in contracts. These include up to 50% loan-to-value ratio (LVR) of Bitcoin or Ethereum.

Should a loan go into default, borrowers have 30 days to repay the debt to "restore the health of their loan, and if no action was taken, Block Earner may automatically sell a portion of the borrower's crypto security.

"As Block Earner looks to take its lending model beyond Australia, Fireblocks' global network and multi-jurisdiction compliance infrastructure gives the company a pathway to scale without having to rebuild custody and security from the ground up in each new market, a common barrier for Australian fintechs expanding overseas," Block Earner said.

The launch also builds on the fintech's experience in bank-led digital money research initiatives, including Project Acacia, and emphasises the growing demand among fintechs and digital asset businesses for secured infrastructure for developments of regulated financial products, it said.

Block Earner growth and partnerships manager Lauren Minicozzi said the partnership has pledged confidence for its customers.

"Security is fundamental when you're holding customer assets as collateral," Minicozzi said.

"Fireblocks gave us the confidence to launch our lending product, knowing our customers' digital assets would be protected by institutional-grade infrastructure. That allowed us to focus on building innovative financial products instead of custody technology."