Bitcoin holders are finding new ways to access liquidity through crypto-backed loans to purchase real estate, enabling them to sidestep capital gains taxes. These loans, gaining traction among Bitcoin investors who don’t always meet conventional financing criteria, allow owners to leverage their Bitcoin without selling.
Mauricio Di Bartolomeo, co-founder of Ledn, explained, "Borrowing using your Bitcoin as collateral doesn’t typically trigger capital gains taxes in most jurisdictions because borrowing against an asset is typically not a taxable event — you are not selling your Bitcoin." With these loans, clients can receive fiat or stablecoins by locking up their BTC at a 50% loan-to-value (LTV) ratio.
The process has speed: one lender reports an average funding time of 9.6 hours. This allows borrowers to use these funds for down payments or to cover property costs. Repayment offers flexibility, where clients can pay anytime without penalties, and even renew loans if their LTV remains under 60%. If Bitcoin’s price appreciates, borrowers can withdraw excess collateral as well.
Ledn's model has found widespread use mainly in Latin America, the U.S., and parts of Europe. Di Bartolomeo noted the borderless nature of Bitcoin as collateral adds to its appeal. While volatility is a concern, where a decline in BTC value prompts notifications for additional collateral, the loan structure ensures that real estate purchases remain intact regardless of price fluctuations.
Traditional banks often hesitate to lend to crypto users, but Di Bartolomeo indicated that Bitcoin loans generally bypass the need for credit scores. Borrowers must post 2:1 collateral to secure these loans, offering lenders a level of security through Bitcoin’s liquidity, which trades 24/7. Ledn recently issued over $300 million in loans just in the first quarter of 2025, projecting to exceed $1 billion by year’s end. In 2024, clients benefited from Bitcoin's price increases significantly outpacing their interest payments.
More wealthy investors are looking to Bitcoin-backed loans to keep their crypto while acquiring hard assets like real estate. This trend allows them to maintain exposure to what they consider their top asset while enjoying the benefits of a new property. As market confidence grows, firms like Xapo Bank are also launching similar products, indicating a broader shift in lending practices within the crypto sector.
Mauricio Di Bartolomeo, co-founder of Ledn, explained, "Borrowing using your Bitcoin as collateral doesn’t typically trigger capital gains taxes in most jurisdictions because borrowing against an asset is typically not a taxable event — you are not selling your Bitcoin." With these loans, clients can receive fiat or stablecoins by locking up their BTC at a 50% loan-to-value (LTV) ratio.
The process has speed: one lender reports an average funding time of 9.6 hours. This allows borrowers to use these funds for down payments or to cover property costs. Repayment offers flexibility, where clients can pay anytime without penalties, and even renew loans if their LTV remains under 60%. If Bitcoin’s price appreciates, borrowers can withdraw excess collateral as well.
Ledn's model has found widespread use mainly in Latin America, the U.S., and parts of Europe. Di Bartolomeo noted the borderless nature of Bitcoin as collateral adds to its appeal. While volatility is a concern, where a decline in BTC value prompts notifications for additional collateral, the loan structure ensures that real estate purchases remain intact regardless of price fluctuations.
Traditional banks often hesitate to lend to crypto users, but Di Bartolomeo indicated that Bitcoin loans generally bypass the need for credit scores. Borrowers must post 2:1 collateral to secure these loans, offering lenders a level of security through Bitcoin’s liquidity, which trades 24/7. Ledn recently issued over $300 million in loans just in the first quarter of 2025, projecting to exceed $1 billion by year’s end. In 2024, clients benefited from Bitcoin's price increases significantly outpacing their interest payments.
More wealthy investors are looking to Bitcoin-backed loans to keep their crypto while acquiring hard assets like real estate. This trend allows them to maintain exposure to what they consider their top asset while enjoying the benefits of a new property. As market confidence grows, firms like Xapo Bank are also launching similar products, indicating a broader shift in lending practices within the crypto sector.
