From Cointelegraph

June 15, 2025 08:40 AM:

Bitcoin holders are using crypto-backed loans to buy real estate without selling any Bitcoin or incurring capital gains taxes. This trend is popular among early adopters and high-net-worth individuals. Borrowers can leverage their Bitcoin as collateral, access liquidity, and retain upside exposure without triggering capital gains taxes in most jurisdictions.

To secure a Bitcoin loan, clients lock up BTC at a 50% loan-to-value ratio and receive fiat or stablecoins with an average funding time of 9.6 hours. Interest and fees accrue over the loan term, with no mandatory monthly payments. Borrowers retain the right to withdraw excess collateral if Bitcoin appreciates during the loan term.

Ledn’s Bitcoin loans have gained adoption in Latin America, the US, and parts of Europe due to Bitcoin’s borderless nature. Concerns about BTC price volatility are addressed by notifications to send additional collateral if the LTV reaches 80%. If necessary, the lender sells BTC to repay the loan, settling the debt without reversing the property purchase.

Traditional lenders often avoid crypto due to regulatory uncertainty and credit risk, but Bitcoin loans bypass the need for credit scores. Borrowers provide 2:1 collateral, allowing lenders to liquidate instantly if the value drops. Ledn issued over $300 million in retail loans in the first quarter of 2025 and is on track to exceed $1 billion by year’s end.

High-net-worth individuals are increasingly turning to Bitcoin-backed loans to access hard assets like real estate without selling their Bitcoin holdings. This approach allows them to maintain exposure to their best-performing investment while enjoying new properties. Xapo Bank CEO Seamus Rocca noted growing comfort among Bitcoin holders in borrowing against their crypto as market confidence increases. Xapo Bank launched a lending product in March that enables users to borrow US dollars using Bitcoin as collateral, with qualified clients accessing up to $1 million in loans while retaining their BTC.

Read more at Cointelegraph: Bitcoin Loans Open Real Estate to Crypto-Rich Buyers