Block Earner Secures Investment from Upside DAO
16 Oct 2023
Block Earner Secures Investment from Upside DAO and Launches New Fundraising Round to Unlock $25 Billion in Australian Crypto Wealth
On the back of launching Crypto-Backed AUD Loans, blockchain fintech Block Earner starts a new fundraising round, to unlock $25 billion worth of Australian crypto wealth, pioneering new lending options for Australians.
SYDNEY, AUSTRALIA – 16 October, 2023 – In September 2023, blockchain-powered fintech Block Earner, introduced Australia's Crypto-Backed AUD Loans, revolutionising lending in Australia. On the back of this achievement, Block Earner has launched its Pre-Series A fundraising round, with new investment announced from Australian Web3 Venture Organisation Upside, and follow-on investment from Framework Ventures, and Long Hash Ventures.
Block Earner has begun its Pre-Series A fundraising round as the first Australian Crypto-Backed Loans provider with an Australian Credit Licence representative authorisation. The fundraising will further propel Block Earner towards its vision of seamlessly expanding traditional financial services with blockchain technology and decentralised finance.
Upside has committed its maximum investment to Block Earner, with 100% of voters in favour of investing. Reflecting strong confidence in the growth trajectory of the company within the Australian landscape. In a growing Australian Web3 sector, Upside stands as a key contributor, fostering innovation and nurturing a thriving ecosystem. As a decentralised autonomous organisation (DAO), Upside distributes decision-making among its members. This unique approach facilitates strategic investments and governance in an inclusive and egalitarian manner. The investment into Block Earner was unanimously supported by Upside’s DeFi (Decentralised Finance) Working Group, comprised of some of Australia’s most experienced participants.
Block Earner business strategy
The Block Earner mission centres around creating a seamless and unified wealth management product that combines the everyday utility of traditional financial services with the power of blockchain technology, making money borderless, frictionless, and accessible to all. Since the initial launch in March of 2021, Block Earner has delivered a comprehensive suite of services that enables users to effortlessly manage their finances, invest in digital assets, and participate in decentralised finance — all through a user-friendly web and mobile application.
A refocused business strategy at Block Earner is built on recognising the untapped potential of cryptocurrency assets in Australia, which based on research by Roy Morgan, is estimated to be around $25 billion AUD. This wealth often remains illiquid due to the lack of loan solutions that accept crypto as collateral. The Block Earner Crypto-Backed Loan product directly addresses this challenge, allowing users to access liquidity in Australian dollars directly to customers bank accounts within 24 hours, while retaining ownership and exposure to their crypto holdings.
Block Earner customers now have the option to borrow Australian dollars using Bitcoin or Ethereum as security. Ethereum-backed loans provide comparison rates starting at 5.95%, while Bitcoin-backed AUD loans start at 7.95%. Users can expect an on-the-spot approval process, with AUD transferred to their bank within 24 hours of approval. Block Earner provides fixed interest rates over 12-month terms, flexible repayment schedules that enable users to make repayments when it best suits their individual needs.
Market leadership, demand and potential
As the first ACL authorised representative Crypto-Backed Loan provider in Australia, Block Earner has a unique position in serving a market segment that has long been underserved and overlooked. A survey of 1,060 Australian crypto owners conducted by YouGov revealed that 61% are highly likely to consider collateralised crypto-backed loans in the next 12 months, indicating substantial demand.
The top reasons for considering a crypto-backed loan include instant approvals (51%) and lower interest rates (48%), reflecting the market's appetite for efficient lending solutions. The estimated $25 billion AUD crypto investment market in Australia presents significant potential for our innovation to unlock substantial wealth for productive use.
Diverse users and usage scenarios
The survey indicated that 71% of respondents were males aged 35-49, typically holding higher degrees and full-time employment, reflecting a well-educated and financially stable customer base. Respondents expressed interest in using our loans for various purposes, such as unexpected expenses (31%), significant purchases (26%), and leisure activities (25%), showcasing the versatility of our product.
Charlie Karaboga, CEO and Co-Founder at Block Earner says: “There's an estimated A$25 billion worth of cryptocurrency sitting on the side lines in Australia right now. The introduction of Crypto-Backed Loans will empower Australians whose digital assets have been underserved by traditional providers. As industry veterans, we understand the profound utility this product brings to the sector.”
Kyall Walker, General Manager at Upside says: “Upside is excited to support the founders and team at Block Earner, whose mission and vision for the future align closely with our members. By providing enhanced accessibility, utility, and compelling new reasons to embrace digital assets and decentralised finance, we believe Block Earner is well-positioned to reshape the lending landscape and revolutionise finance in Australia.”
YouGov research methodology: the survey was commissioned by Block Earner, and administered by YouGov. It was conducted online between 5th-11th of May 2023, among a sample of 1,060 Australian crypto owners aged 18+.