Bitcoin loans are emerging as a crucial alternative for property buyers, allowing them to avoid selling their assets and incurring tax liabilities.
How Bitcoin Loans Work
To secure a Bitcoin loan, clients lock up BTC at a standard 50% loan-to-value ratio. In exchange, they receive fiat or stablecoins that can be used for a down payment or to cover the entire cost of a property. The average funding time is around 9.6 hours, and loan repayment can occur anytime without penalties.
Advantages and Risks of Crypto Loans
Bitcoin loans offer numerous advantages, including bypassing the need for credit checks. However, there is a volatility risk; if Bitcoin's price falls, clients may need to provide additional collateral, and if the LTV reaches 80%, the lender may sell part of the BTC to settle the loan.
Trends and Future of Bitcoin-Based Lending
With growing market confidence, more high-net-worth individuals are turning to Bitcoin-backed loans to maintain asset ownership while investing in real estate. Ledn issued over $300 million in retail loans in Q1 2025 and expects to grow that figure by year-end.
Bitcoin-backed lending is evolving as a significant tool for preserving and expanding wealth without the need to liquidate assets.
