Coleman: Crypto-Backed Mortgages Coming to Australia

Crypto-backed mortgage products will eventually enter the Australian lending market as regulatory frameworks mature, according to Stephanie Coleman, operations manager at Sydney-based brokerage Unconditional Finance. Speaking to Broker Daily, Coleman noted that while countries like the US are already moving forward with such products, Australian lenders remain cautious due to volatility concerns and lack of regulatory clarity.

Current Barriers to Crypto-Backed Mortgages

Despite significant growth in crypto adoption among Australians, crypto remains largely excluded from lending decisions. Coleman explained that regulatory uncertainty is the primary obstacle: “AUSTRAC and ASIC guidelines mean lenders carry significant compliance risk if they can’t verify the origin of crypto wealth, so many simply avoid it altogether.”

Volatility also presents a challenge for lenders, as collateral values can fluctuate substantially over short timeframes. “Until there’s clearer regulatory guidance specific to digital assets in lending, most lenders will remain conservative,” Coleman said.

US Market Precedent

The US has already begun moving in this direction. Recently, crypto exchange Coinbase partnered with Better Home and Finance to offer a product that allows borrowers to use USDC or Bitcoin as collateral to help cover a home loan deposit.

Potential Australian Market Evolution

Coleman believes the Australian crypto lending market is likely to develop along two lines: a mainstream mortgage approach with a standardized assessment framework for digital assets held by regular borrowers, and a specialized lending approach for individuals with substantial crypto wealth.

Growing Crypto Adoption in Australia

According to Independent Reserve’s Cryptocurrency Index 2026, 33% of Australians currently hold crypto, marking the highest ownership rate in the index’s history. This represents a significant increase from 2019, when ownership stood at 17%.

Despite this surge in adoption, Coleman noted that “Crypto is still outside the mainstream Australian mortgage system. Most lenders do not accept it as security, and its primary use remains converted to cash and used as a deposit.”

Opportunity for Brokers and Borrowers

Coleman sees significant opportunity emerging as regulatory frameworks evolve. For mortgage brokers who understand the crypto landscape, there is potential to attract younger Australians with meaningful crypto holdings seeking to enter the property market. “Brokers who understand this space and know which lenders will work with crypto-sourced funds can genuinely differentiate themselves and serve an underserviced market,” she said.

For borrowers, the advantage is clear: they could leverage crypto wealth without first converting to fiat currency. However, the volatility issue remains a concern that must be addressed alongside regulatory solutions.

Coleman expressed optimism about progress in the space, noting: “Twelve months ago, the crypto conversation was almost non-existent with mainstream lenders.”

FAQ

Q: Why don’t Australian lenders currently accept crypto as mortgage collateral? A: According to Coleman, regulatory uncertainty is the primary barrier. AUSTRAC and ASIC guidelines create compliance risk for lenders who cannot verify the origin of crypto wealth. Additionally, volatility concerns make it difficult for lenders to accept collateral that can fluctuate significantly in value.

Q: What percentage of Australians currently hold cryptocurrency? A: According to Independent Reserve’s Cryptocurrency Index 2026, 33% of Australians currently hold crypto, up from 17% in 2019.

Q: How might Australian crypto lending develop? A: Coleman identified two potential approaches: a mainstream mortgage approach with standardized assessment frameworks for digital assets held by regular borrowers, and a specialized lending approach for individuals with substantial crypto wealth.