Bitcoin holders use crypto -supported loans to buy real estate without selling a single SAT while the sidestepping capital gets tax.
The emerging trend gets momentum in early crypto adopters, entrepreneurs, and individuals of high-value “rich bitcoin” but often do not meet the traditional criteria for real estate financing, Mauricio di Bartolomeo, LEDN co-founder, told cointelegraph.
Lending Models in Bitcoin Allow lenders to use their crypto without divesting. Since getting a loan is not usually counted as a vulnerable event, clients can access liquidity while maintaining reversal exposure.
“Borrowing with your Bitcoin as collateral does not usually motivate taxes that get taxes in most constituents because borrowing against a possession is usually not a delicate event -you don’t sell your bitcoin,” Di Bartolomeo said.
Related: How to buy a house with a crypto -supported loan
Bitcoin loans are fast
To secure a bitcoin (Btc) Loan, clients locked BTC in a standard 50% ratio of naive-value (LTV) and receiving fiat or stablecoins. The average funding time for a lender is 9.6 hours, Di Bartolomeo said. These funds were used either as a payment or to cover the full cost of a owner.
The model also offers some flexibility. Interests and fees are accumulated in the loan term, with no monthly payment. Payment can occur at any time without penalties, and loans can be changed if the LTV remains under 60%. The borrowers also maintain the right to revoke excess collateral if Bitcoin values during the loan term.
Di Bartolomeo said Ledn’s Bitcoin loans have found strong adoption in Latin America, US, and parts of Europe. “The beauty of Bitcoin as collateral is endless,” he said.
A repeated concern for BTC-supported loans is volatility. “As Bitcoin prices decline and LTV increases, clients will receive notifications to send additional collaterals,” Di Bartolomeo explained.
If the LTV reaches 80%, the lender sells the required amount of BTC to repay the debt, returning any residue to the borrower. Since the real estate transaction has occurred, a destruction does not reverse the purchase of ownership – it only fixes the loan.
Related: Maple Finance, Falconx Secure Bitcoin-Back Loan from Cantor Fitzgerald-Report
Bitcoin as collateral, no credit check required
Traditional lenders are often shy of crypto due to uncertainty and credit risk. However, Di Bartolomeo said Bitcoin loans can miss the need for credit scores. The lenders post 2: 1 collateral, and lenders can be able to lighten immediately if the amount drops.
“We believe Bitcoin is the most clean collateral in the world. It traces 24/7, it’s deep liquid, and transactions can be transmitted worldwide real-time,” Di Bartolomeo said.
LEDN issued more than $ 300 million in retail loans in the first quarter of 2025 and at speeds exceeding $ 1 billion by the end of the year, the company said. Additionally, in 2024, clients earned eight times more from Bitcoin’s appreciation than they paid interest, with more than 1,000 BTCs retreating as excess collateral when prices went up.
Di Bartolomeo added that more and higher net-worth individuals return to Bitcoin-supported loans. Instead of cashing out, they use their BTC handles to access hard assets such as real estate, keeping exposure to what they look like as their best performance investment.
“They want to keep exposure to their highest and best performance performance, and will still enjoy moving to a new owner without selling their Bitcoin.”
In May, Seamus Rocca, CEO of Gibraltar’s private bank Xapo Bank said, said Bitcoin holders become more comfortable Borrowing against their crypto as you grow confidence in the market.
On March 18, Xapo Bank Launched a lending product It allows users to borrow US dollars with their Bitcoin as collateral. In the product, qualified clients can access up to $ 1 million in loans while maintaining their BTC.
