Crypto-Secured Lending
Access Liquidity - Keep Your Coins
Working capital at 25–70% LTV by collateralizing Bitcoin, Ethereum, or stablecoins — funds in 24 hours and avoids triggering taxable sales.
Overview
What Is Crypto-Secured Lending?
Crypto-secured lending lets you borrow cash using your cryptocurrency holdings as collateral — without selling them. You transfer your crypto to a secure custodian, receive a loan based on a percentage of its value (the LTV ratio), and get your collateral back in full once the loan is repaid.
Unlike traditional loans, approval is based on your collateral value rather than credit score or income. Because the lender holds liquid crypto that can be liquidated if needed, these loans can fund in 24–48 hours with minimal documentation. The tradeoff: your collateral is at risk if prices drop significantly and trigger a margin call.
The Process
How Crypto-Secured Lending Works
From asset evaluation to funding — the 4-step process.
Asset Evaluation
Your crypto holdings are assessed for eligibility, liquidity, and value to determine your borrowing capacity.
Collateral Transfer
Your assets move to institutional cold storage — multi-sig, air-gapped, and insured — held for the loan duration.
Loan Funded
Receive USD (or stablecoins) at 25–70% LTV within 24–48 hours of collateral confirmation.
Monitor & Repay
LTV is monitored continuously. Repay the loan in full to retrieve your crypto collateral intact.
Compare Options
Crypto-Secured vs. Other Business Financing
How borrowing against crypto compares to traditional unsecured business financing options.
| Factor | Crypto-Secured | Business LOC | MCA | No-Doc Loan |
|---|---|---|---|---|
| Collateral required | Crypto assets | None (credit-based) | None (revenue-based) | None |
| LTV / advance rate | 25–70% of collateral | N/A | 5–15% of monthly rev | N/A |
| Typical rate | 6–12% annually | 8–15% APR | 30–60% factor | 12–25% APR |
| Credit check | None | Yes | Soft pull | Minimal |
| Income verification | None | Usually yes | Bank statements | None |
| Time to fund | 24–48 hours | 1–3 days | 24 hours | 1–3 days |
| Retain crypto upside | Yes | N/A | N/A | N/A |
| Triggers tax event | No | No | No | No |
| Margin call risk | Yes if price drops | None | None | None |
Rates and terms are representative and subject to market conditions and lender underwriting.
Interested in This Product?
We’re Building Lender Relationships in This Space
Crypto-secured financing isn’t something we’re actively placing right now — but if you have holdings you’d like to leverage, reach out. We’ll be in touch as soon as we can connect you with a lender.
Connect With UsStructures
Types of Crypto-Secured Financing
Different structures to match your crypto portfolio and capital needs.
Crypto-Backed Term Loan
Fixed loan amount with a set repayment schedule (3–36 months). Your collateral is locked for the term with fixed or variable interest. Suited for one-time capital needs.
Best for: Businesses needing a defined amount for a specific purchase — equipment, inventory, or expansion — with predictable repayment terms.
Crypto-Backed Line of Credit
Revolving credit facility where you draw and repay as needed up to your approved limit. Interest charged only on the drawn balance. Collateral remains on deposit.
Best for: Businesses with variable cash flow needs who want ongoing access to capital without repeatedly applying for new loans.
Stablecoin-Collateralized Loan
Uses USDC, USDT, or DAI as collateral, enabling 70–90% LTV with minimal liquidation risk. Lower rates than volatile-asset-backed loans.
Best for: Holders of stablecoin reserves who want to preserve yield-generating positions while accessing fiat for operations.
Honest Assessment
Benefits & Considerations
Benefits
- Access liquidity without selling — retain ownership and upside exposure to your holdings
- No credit check or income verification — approval based entirely on collateral value
- Fast funding — typically 24–48 hours from collateral transfer confirmation
- No taxable event — depositing crypto as collateral is not a disposal in most jurisdictions
- Flexible use of funds — business operations, equipment, inventory, or investment
- High LTV on stablecoins (70–90%) — near-full liquidity with minimal liquidation risk
Considerations
- Margin call risk — a significant price drop can force you to add collateral or face liquidation
- Conservative LTV ratios (25–50% for BTC/ETH) limit how much you can borrow per dollar of crypto
- Higher rates than traditional secured loans — reflects lender risk and crypto market volatility
- Limited cryptocurrency types accepted — newer or low-liquidity tokens typically ineligible
- Forced liquidation triggers a taxable event — even if you did not want to sell
- Regulatory landscape is evolving — rules may change for crypto lending in your jurisdiction
Real-World Example
Bitcoin Mining Operation: Sell or Borrow?
A mining company holds 10 BTC at $50K each and needs $150K for new equipment. Should they sell or borrow?
Assumes BTC appreciates from $50K to $75K over 12 months. If BTC had fallen instead, the loan would carry margin call risk — illustrating why collateral management is critical.
Who It Fits
Who Uses Crypto-Secured Loans?
Crypto Mining Operations
Mining companies borrow against BTC holdings to fund equipment upgrades without selling at cyclical lows — financing capex while preserving upside through the next halving.
Explore Asset-Based LendingBlockchain Startups
Early-stage teams use token treasury reserves as collateral for working capital, avoiding equity dilution and premature token sales that could signal distress.
Explore No-Doc LoansDigital Asset Funds
Crypto investment funds access fiat to pursue new opportunities or execute strategies without liquidating core positions or triggering taxable events.
Explore Lines of CreditE-commerce & Digital Brands
Online businesses with accumulated crypto treasuries leverage holdings for inventory and marketing spend while remaining invested in the ecosystem.
Explore Revenue-Based FundingFAQ
Frequently Asked Questions
Common questions about crypto-secured financing, collateral management, and risk.
Coming Soon
Have Crypto You’d Like to Put to Work?
We’re actively developing lender relationships in this space. In the meantime, tell us your situation — or explore asset-based options we can place today.