Bitcoin holders are increasingly securing property by borrowing against their crypto instead of selling it. This strategy allows them to access funds without incurring capital gains taxes. As Bitcoin rises in value, these borrowers retain exposure to price appreciation while securing tangible assets like homes.
This lending trend has grown among high-net-worth individuals who struggle with traditional bank approvals. Many crypto-rich individuals lack steady income or credit history but own large Bitcoin portfolios. These crypto-backed loans bridge that gap without requiring asset liquidation.
Platforms such as Ledn and Xapo Bank have made this lending option more accessible worldwide. Borrowers can lock in loans within hours and receive fiat or stablecoins. Consequently, the process offers flexibility and speed compared to traditional mortgages.
Bitcoin-backed loans from Ledn require borrowers to post Bitcoin at a 50% loan-to-value ratio. The borrower receives fiat currency or stablecoins to use toward real estate purchases. These loans are typically funded within 10 hours, enabling fast access to liquidity.
There are no mandatory monthly repayments, and borrowers can repay at any time without penalties. As Bitcoin appreciates, borrowers can even withdraw some of their collateral. This model preserves their long-term exposure to Bitcoin while allowing them to diversify into property.
Ledn has seen strong adoption across Latin America, the U.S., and Europe. Borrowers appreciate the tax efficiency and the 24/7 liquidity of Bitcoin. In 2024, clients reportedly gained eight times more from Bitcoin’s rise than they paid in interest.
In March 2025, Xapo Bank introduced a loan service allowing clients to borrow up to $1 million against Bitcoin. This offering targets high-net-worth clients seeking to purchase real estate without selling their crypto. The product caters to a rising demand for tax-free and flexible loan solutions.
Xapo’s model also avoids credit checks by using Bitcoin as fully collateralized backing. If Bitcoin prices drop significantly, the platform liquidates some collateral to maintain the loan balance. This ensures both parties remain protected throughout the loan term.
Borrowers maintain ownership of the property even if partial liquidation occurs. The purchase is not reversed, and excess funds are returned to the client. This design has attracted wealthy investors seeking to grow their portfolio without disrupting their crypto holdings.
Bitcoin’s global liquidity and real-time transfer capabilities make it a strong candidate for secured lending. These loans provide fast, borderless access to capital while bypassing traditional financial barriers. Borrowers retain the upside of their digital assets while investing in long-term physical properties.
Market confidence in crypto collateral is increasing as institutions refine lending models. The flexible repayment terms and absence of capital gains taxes are further accelerating adoption.
