Unlocking Real Estate: How Bitcoin Loans Are Changing the Game! 🏡💰

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In a world where Bitcoin holders are strutting about like peacocks in a crypto garden, they’ve discovered a delightful little trick: leveraging crypto-backed loans to snatch up real estate without parting with a single satoshi! Yes, you heard that right—capital gains taxes are about as relevant as a floppy disk in a cloud storage world. đŸ„ł

This emerging trend is gaining traction faster than a cat on a hot tin roof, especially among early crypto adopters, entrepreneurs, and those high-net-worth individuals who are “Bitcoin wealthy” but often find themselves on the wrong side of the traditional financing fence. Mauricio Di Bartolomeo, co-founder of Ledn, shared this nugget of wisdom with CryptoMoon, and it’s as juicy as a ripe fruitcake. 🍰

With Bitcoin-backed lending models, borrowers can leverage their crypto without divesting. It’s like having your cake and eating it too—without the calories! Since taking a loan doesn’t typically count as a taxable event, clients can access liquidity while keeping their upside exposure. Talk about a win-win! 🎉

“Borrowing using your Bitcoin as collateral doesn’t typically trigger capital gains taxes in most jurisdictions because borrowing against an asset is typically not a taxable event — you are not selling your Bitcoin,” Di Bartolomeo explained, probably while sipping a fine tea and contemplating the mysteries of the universe.

Bitcoin Loans: Homes Funded Faster Than You Can Say ‘Hocus Pocus’

To secure a Bitcoin (BTC) loan, clients lock up their precious BTC at a typical 50% loan-to-value (LTV) ratio and receive fiat or stablecoins. The average funding time for one lender is a mere 9.6 hours—faster than a rabbit on roller skates! 🐇💹 These funds can then be used as a down payment or to cover the entire cost of a property. It’s like magic, but with fewer rabbits and more spreadsheets.

The model also offers flexibility that would make a yoga instructor proud. Interest and fees accrue over the loan term, with no mandatory monthly payments. Repayment can occur anytime without penalties, and loans can be renewed if the LTV remains under 60%. Borrowers can even withdraw excess collateral if Bitcoin appreciates during the loan term. It’s like having a safety net made of gold! đŸ„‡

Di Bartolomeo noted that Ledn’s Bitcoin loans have found a warm welcome in Latin America, the US, and parts of Europe. “The beauty of Bitcoin as collateral is that it is borderless,” he said, probably while gazing at a map and dreaming of world domination.

However, a recurring concern with BTC-backed loans is volatility. “As Bitcoin price drops and the LTV increases, clients will receive notifications to send additional collateral,” Di Bartolomeo explained, sounding a bit like a worried parent reminding their child to wear a coat in winter.

If the LTV reaches 80%, the lender sells the necessary amount of BTC to repay the loan, returning any remainder to the borrower. Since the real estate transaction has already occurred, a liquidation doesn’t reverse the property purchase—it simply settles the loan. It’s like a game of musical chairs, but with fewer chairs and more Bitcoin. đŸŽ¶

Bitcoin as Collateral: No Credit Check Needed, Just a Sense of Humor!

Traditional lenders often shy away from crypto like a cat from a bath due to regulatory uncertainty and credit risk. However, Di Bartolomeo said Bitcoin loans can bypass the need for credit scores entirely. Borrowers post 2:1 collateral, and lenders can liquidate instantly if the value falls. It’s like a game of poker, but with fewer bluffs and more Bitcoin. 🃏

“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 noted, probably while contemplating the meaning of life and the universe.

Ledn issued over $300 million in retail loans in the first quarter of 2025 and is on pace to exceed $1 billion by year’s end, the firm said. Furthermore, in 2024, clients earned eight times more from Bitcoin’s appreciation than they paid in interest, with over 1,000 BTC withdrawn as excess collateral when prices climbed. It’s like finding a golden egg in a nest of regular ones! đŸ„šâœš

Di Bartolomeo added that more and more high-net-worth individuals are turning to Bitcoin-backed loans. Rather than cashing out, they are leveraging their BTC holdings to access hard assets like real estate, maintaining exposure to what they view as their best-performing investment. It’s like keeping your favorite toy while getting a shiny new one! 🧾

“They want to keep the exposure to their highest and best performing asset, and still get to enjoy moving into a new property without selling their Bitcoin,” he said, probably with a twinkle in his eye.

In May, Seamus Rocca, CEO of the Gibraltar-based private bank Xapo Bank, said Bitcoin holders are becoming more comfortable borrowing against their crypto as market confidence grows. It’s like watching a toddler take their first steps—adorable and slightly terrifying!

On March 18, Xapo Bank launched a lending product that allows users to borrow US dollars using their Bitcoin as collateral. With this product, qualified clients can access up to $1 million in loans while keeping their BTC. It’s like having your cake, eating it, and then finding out it’s calorie-free! 🎂

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2025-06-15 15:50