Block Earner, endorsed by Coinbase, has won a court case against ASIC and is now looking to introduce Bitcoin-backed mortgages and crypto credit cards. The company’s COO, James Coombes, highlights a market of crypto-rich individuals seeking home ownership. Despite their ambitions, some industry experts remain doubtful about the implications of cashless mortgages.
Block Earner, a startup backed by Coinbase, is forging ahead with plans for Bitcoin-backed mortgages following a significant court verdict. The company recently triumphed over the Australian Securities and Investments Commission (ASIC) in a lawsuit that lasted for two years, allowing it to explore innovative cashless home loans and credit cards. This victory marks a pivotal moment for the company, which aims to diversify its offerings in the evolving financial landscape.
James Coombes, the chief operating officer of Block Earner, expressed ambitious goals for the startup, envisioning it as a comprehensive resource for potential homeowners. By combining the roles of broker and lender, Block Earner aims to cater to a growing demographic of crypto wealthy individuals eager to enter the property market. As Coombes puts it, for an estimated $1 million home, they would need around $300,000 in Bitcoin to begin their journey into home ownership.
In essence, Block Earner’s model allows users to leverage their Bitcoin holdings to secure a home, thus providing clients with both property and an investment in cryptocurrency. However, the venture isn’t without its sceptics, and experts within the financial sector express mixed feelings about the sustainability and risks of such cashless mortgages. With the changing dynamics of housing and digital finance, the concept raises important questions about market stability.
Just last week, Block Earner emerged victorious in its legal battle against ASIC, which had sued it for allegedly offering yield-earning decentralised finance products without the necessary financial services licence. This outcome not only legitimises their operations but possibly opens the door for further innovations in cryptocurrency banking.
