Loans
How to Apply for a Crypto-Backed Loan: The Best Crypto Loans in Australia
10 Jun 20253min
In this article we answer the question: How do I borrow AUD using crypto?
Looking to borrow AUD using the untapped value of your crypto, without selling it? Welcome to the world of crypto-backed loans — a smarter way to access cash while keeping your digital assets intact.
In this guide, we’ll walk you through how crypto loans work in Australia, what you’ll need to apply, and what to watch out for.
What Is a Crypto-Backed Loan?
A crypto-backed loan lets you use your cryptocurrency (like Bitcoin, Ethereum, or Stablecoins) as security. It’s a growing segment of the digital currency revolution and Block Earner is the leading player in Australia. Block Earner provides crypto-secured Australian dollar (AUD) loans with “excellent service, rates and user experience” according to our thousands of happy customers.
The biggest benefit of crypto-backed loans? You retain the legal title of your crypto — while accessing rapid liquidity in AUD.
It’s a popular solution for:
- Anyone wanting to retain long-term exposure to crypto markets
- Business owners who hold crypto and want AUD capital
- Property investors looking to avoid selling crypto
Block Earner Crypto-Backed Loan Options — Designed for Maximum Flexibility
Whether you're borrowing $50 or $5 million AUD, Block Earner gives you control, clarity, and confidence. Choose the loan that suits your needs:
Line of Credit
Tap into your crypto whenever you need it:
- Fixed interest rate for 12 months
- Repay when you like (within 12 months)
- No lock-ins
- Rapid approvals
- Top up or repay anytime
- Redraw options (A redraw lets you access additional AUD from your existing crypto-backed loan)
Perfect for anyone needing flexible and on-demand access to capital.
Fixed Term Loan
An option with a reliable repayment schedule and no early repayment fees:
- Fixed interest rate for 3-5 years
- Flexible repayment schedule
- No lock-ins
- Rapid approvals
- Top up anytime
- Desktop and mobile app enabled
Ideal for property purchases, lump-sum investments, or large one-off expenses.
Why does Block Earner stand out?
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Borrow from $50 up to $5 million
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No lock-ins or early repayment fees
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Transparent rates and easy-to-understand terms
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Backed by a local Australian team and trusted by thousands
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No onlending or trading with your cryptocurrency
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Registered with AUSTRAC and an ACL (Australian Credit License) Authorised Representative
Are Crypto-Backed Loans Legal in Australia?
Yes — crypto-backed loans are legal and available in Australia. However, not all providers, such as LEDN or SALT, are AUSTRAC-registered, based in Australia, or compliant with local regulations like Block Earner.
Block Earner is also an Authorised Representative of an Australian Credit Licence (ACL), meaning we’re licensed to offer credit products and meet Australia’s responsible lending standards.
Who Can Apply?
To apply for a crypto-backed loan in Australia, you generally need to:
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Be 18+ with a valid Australian ID
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Own supported crypto assets like BTC, ETH, or Stablecoin USDC & USDT
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Complete identity verification (KYC)
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Have a bank account in your name for receiving AUD
How to Apply for a Crypto-Backed Loan
Here’s a step-by-step breakdown of the typical application process:
1. Create an Account
Sign up with a registered platform like Block Earner and verify your identity.
2. Buy or Deposit Your Crypto
You can Buy or Transfer crypto to the Block Earner platform.
3. Choose Your Loan Type
Select from a Fixed Term Loan (fixed rate and repayment schedule) or a Line of Credit (fixed rate and flexible repayments).
4. Apply via Desktop or Mobile App
Navigate to your Loans Account within the app to see how much you can borrow based on your crypto’s current value and your chosen Loan-to-Value Ratio (LVR).
5. Receive AUD to Your Bank Account
Once approved, your funds are transferred — often on the same day.
How Much Can You Borrow?
This depends on your Loan-to-Value Ratio (LVR) and a credit assessment, which typically ranges from 40% to 80%, depending on the crypto you use as security.
With Block Earner:
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Get up to 50% LVR using Bitcoin or Ethereum on Fixed Term Loans
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Access up to 80% LVR using stablecoins like USDC or USDT
For example:
Deposit $10,000 in Bitcoin
At 50% LVR, you can borrow $5,000 AUD
What Are the Risks?
Like any loan product, crypto-backed loans come with a few key risks:
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Market volatility: If your crypto drops in value, your Loan-to-Value Ratio (LVR) rises — increasing the chance of receiving a Default Notice.
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Default Notice: If your loan LVR reaches an unhealthy level and no action is taken within 30 days, some of your crypto may be sold to restore a healthy balance.
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Interest accrual: You’re still responsible for repaying the AUD borrowed, along with interest — so it’s important to understand your repayment terms.
How Block Earner Helps You Manage Risk
If your loan falls into default, Block Earner gives borrowers 30 days* to either repay in AUD or add more crypto to rebalance the loan. If no action is taken within that period, only a portion of your crypto is sold — just enough to bring your LVR back to a safer level of below 55%.
This approach is designed to give you time and flexibility, reducing the risk of sudden liquidation.
Why Choose Block Earner Loans?
Block Earner is a trusted Australian platform offering:
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Fast approvals (apply in the morning, get funds that afternoon)
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Fixed rates & transparent fees (2% origination fee, no early repayment penalties)
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Line of Credit rate from 9.50% (11.93% comparison rate*)
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Fixed Term rate from 11.50% (12.17% comparison rate*)
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Local support (Sydney-based team with live chat and book a call)
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Maintain your crypto exposure (your crypto stays in your name)
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Regulated & award-winning (registered with AUSTRAC, winner of the 2024 WeMoney Lending Innovation of the Year)
Ready to Apply?
Don’t sell your Bitcoin. Put it to work.
Disclaimer: *Approved applicants only. Terms, conditions, fees and charges apply. *The rate provided above is indicative and your rate may be different based on a variety of factors, including your credit worthiness. Rates are subject to change. ^The comparison rates are based on a secured loan of $10,000 over a term of 3 years. The comparison rate provided includes a 2% origination fee. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Credit provided by Web3 Loans Pty Ltd ACN 668 516 952 and managed by Web3 Ventures Pty Ltd trading as Block Earner (ACN 655 090 869) authorised representative 551024 of Mortgage Direct Pty Limited ACN 075 721 434 Australian Credit Licence 391876.
*The 30-day grace period applies only to loans held by natural persons (individual borrowers). It does not apply to loans held by legal entities such as companies, trusts, or other incorporated structures. Block Earner reserves the right to liquidate security immediately for non-individual borrowers if the loan becomes undercollateralised.
