Bitcoin holders take advantage of crypto-supported loans, which increase capital profit taxes to buy real estate without selling the same set.
Emerging tendency is gaining momentum among early crypto adopts, entrepreneurs, and high-net-world individuals, who are “bitcoin rich”, but often did not meet traditional norms for real estate financing, Maurissio Di Bortolomo, co-founder, LEDN co-founder, was noted.
Bitcoin-supported lending models allow borrowers to take advantage of their crypto without any division. Since taking a loan is usually not counted as a taxable event, customers can use liquidity while maintaining upside down exposure.
“Using your bitcoin as your bitcoin usually does not trigger capital profit taxes in most courts because borrowing against a property is usually not a taxable event – you are not selling your bitcoin,” Di Bortolomo said.
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Bitcoin Loan Fund Homes Fast
To secure a bitcoin (BTC) loan, customers lock the BTC in a specific 50% loan-to-price (LTV) ratio and receive fiat or stabilcoins. The average money time for a lender is 9.6 hours, Di Bartolomo said. These funds are used either as a down payment or to cover the entire cost of a property.
The model also provides some flexibility. Interest and fee are more than the loan period, with no compulsory monthly payment. Any time can occur at any time without repayment, and if the LTV remains less than 60%, the loan can be renewed. If the bitcoin appreciates during the loan period, the borrowers maintain the right to withdraw the additional collateral.
Di Bartolomo said LEDN’s bitcoin loans have adopted strongly in Latin America, America and parts of Europe. “The beauty of bitcoin as bitcoin is that it is border,” he said.
A recurring anxiety with BTC-supported loans is volatility. “As the bitcoin value falls and LTV increases, customers will receive information to send additional collateral,” de bortolomo explained.
If the LTV reaches 80%, the lender sells the required amount of BTC to repay the loan, refunds any balance to the borrower. Since real estate transactions have already been done, a liquidation does not reverse the purchase of property – it only disposes the debt.
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Bitcoin as collateral, no credit check is required
Traditional lenders often run away from crypto due to regulatory uncertainty and credit risk. However, Di Bartolomo stated that bitcoin loans can completely ignore the requirement of credit score. Borrowers Post 2: 1 collateral, and lenders immediately fall if the price falls.
“We believe that bitcoin is the oldest collateral in the world. It trades 24/7, it is a dark liquid, and the transaction can be sent globally in real -time,” said D Bartolomo.
LEDN released more than $ 300 million in retail debt in the first quarter of 2025 and is at a speed of over $ 1 billion by the end of the year, said the firm said. In addition, in 2024, customers earned eight times more than the praise of bitcoins, as they paid for interest, more than 1,000 BTC withdrew as additional collateral when prices climbed.
Di Bartolomo said that more and more high-net-world individuals are turning to bitcoin-supported loans. Instead of cashing out, they are taking advantage of their BTC holdings to use rigid assets such as real estate, which they see as their best performance investment.
“They want to keep in touch with their highest and best performing property, and still enjoy going into a new property without selling their bitcoin.”
In May, Seemus Rokka, CEO of Gibraltar -based private bank XAPO Bank, stated that bitcoin holders are borrowing more comfortable against their crypto as the market confidence increases.
On March 18, XAPO Bank launched a lending product, which allows users to borrow US dollars as collateral using their bitcoin. With the product, qualified customers can reach $ 1 million in the loan keeping their BTC.
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