Catenaa, Sunday, June 22, 2025-Bitcoin holders are increasingly using crypto-backed loans to buy real estate without selling their digital assets, allowing them to avoid capital gains taxes and retain exposure to Bitcoin’s price movements, industry experts say.
Mauricio Di Bartolomeo, co-founder of crypto lending platform Ledn, had reportedly said that Bitcoin-backed loans let borrowers use their cryptocurrency as collateral while accessing liquidity in fiat or stablecoins.
Since taking out a loan is not considered a taxable event, users avoid triggering capital gains taxes on their holdings.
Clients typically lock up Bitcoin at about 50% loan-to-value (LTV) and receive funds within hours to cover home purchases or down payments.
Loans do not require monthly payments, and borrowers can repay or renew the loan anytime without penalties.
If Bitcoin’s price falls and LTV reaches 80%, lenders liquidate enough BTC to cover the loan, but the real estate deal remains unaffected.
This lending model is gaining traction especially in Latin America, the US, and parts of Europe, where traditional mortgage access is limited for crypto holders.
Di Bartolomeo said Bitcoin’s liquidity and global availability make it an ideal collateral asset.
Ledn reported issuing more than $300 million in retail loans in Q1 2025, with high-net-worth clients increasingly leveraging Bitcoin-backed loans to buy homes while maintaining their crypto exposure.
Seamus Rocca, CEO of Xapo Bank, echoed the trend, highlighting growing market confidence in borrowing against Bitcoin amid regulatory clarity.
