Bitcoin Loans Open Doors for Crypto-Rich Buyers in Real Estate Market
By Amin Haqshanas
Published: June 15, 2025
As the cryptocurrency landscape continues to evolve, Bitcoin-backed loans are emerging as a transformative financial tool for real estate purchases. This innovative approach allows individuals holding substantial amounts of Bitcoin (BTC) to acquire properties without liquidating their assets, thereby avoiding capital gains taxes and maintaining exposure to potential market gains.
The Rise of Bitcoin-Backed Lending
Bitcoin holders, particularly early adopters and high-net-worth individuals, are increasingly opting for crypto-backed loans to navigate the traditional barriers of real estate financing. Mauricio Di Bartolomeo, co-founder of Ledn, highlighted this growing trend, stating that many “Bitcoin wealthy” individuals often fall short of conventional mortgage eligibility criteria. With Bitcoin as collateral, these borrowers can access liquidity while keeping their investments intact.
"As borrowing against an asset is typically not a taxable event, clients can leverage their Bitcoin and avoid triggering capital gains taxes," Di Bartolomeo explained.
Quick and Flexible Financing Solutions
Clients using Bitcoin to secure loans generally establish a 50% loan-to-value (LTV) ratio, allowing them to receive funds in fiat currency or stablecoins. The average time to obtain funding from some lenders can be as short as 9.6 hours. These funds can be utilized for down payments or even to finance the entirety of a property purchase.
This lending model is marked by its flexibility. Borrowers are not required to make mandatory monthly payments during the loan duration, and repayments can be made at any time without incurring penalties. If Bitcoin’s value increases, borrowers can also withdraw excess collateral, further enhancing the model’s appeal.
Di Bartolomeo noted Ledn’s Bitcoin loans have particularly gained traction in regions such as Latin America, the United States, and parts of Europe. "The beauty of Bitcoin as collateral is that it is borderless," he remarked, underscoring the global applicability of this financial tool.
Navigating Volatility and Risk
One of the primary concerns with Bitcoin-backed loans is market volatility. Should Bitcoin’s price decline, leading to an increased LTV, borrowers will be alerted to provide additional collateral. If the LTV reaches 80%, lenders may liquidate a portion of the BTC to settle the loan, with any surplus returned to the borrower. Importantly, this selling does not affect the real estate purchase, ensuring that clients retain their property even through market fluctuations.
Access Without Traditional Barriers
In contrast to conventional lenders often wary of the regulatory uncertainties surrounding cryptocurrency, Bitcoin loans eliminate the need for credit checks. Instead, borrowers are required to post collateral at a 2:1 ratio, allowing lenders to liquidate the collateral swiftly if necessary. "We believe Bitcoin is the world’s most pristine collateral. It trades 24/7, it is deeply liquid, and transactions can be sent globally in real-time," Di Bartolomeo emphasized.
In the first quarter of 2025, Ledn reported issuing over $300 million in retail loans and forecasted reaching over $1 billion by the year’s end. Notably, in 2024, clients realized returns eight times greater from Bitcoin appreciation compared to the interest charged on their loans, with thousands of BTC withdrawn when the asset’s price rose.
A Shifting Mindset Among Wealthy Individuals
The industry is witnessing a growing trend where affluent individuals prefer leveraging their Bitcoin holdings for real estate investments rather than liquidating them. "They want to maintain exposure to their highest-performing asset while still enjoying the benefits of moving into a new property," Di Bartolomeo concluded.
Statements from leaders such as Seamus Rocca, CEO of Xapo Bank, emphasize that as market confidence rises, Bitcoin holders are increasingly comfortable with borrowing against their digital assets. In March, Xapo Bank launched its own lending product enabling users to borrow US dollars while keeping their Bitcoin as collateral, further illustrating the trend’s momentum.
Conclusion
As Bitcoin-backed loans redefine traditional financing paradigms, more investors are expected to embrace this innovative approach. It not only facilitates real estate purchases without tax liabilities but also exemplifies a significant shift in how wealth is managed and utilized in an evolving financial landscape.