- Client: Ultra-high-net-worth individual based in Dubai
- Challenge: Securing a circa £100M crypto-backed loan against a substantial Bitcoin portfolio with institutional custody and a lender capable of funding a facility of this size
- Loan Amount: Circa £100M non-recourse crypto-backed loan
A Dubai-based ultra-high-net-worth client approached Enness Global seeking to unlock significant liquidity from an extensive Bitcoin portfolio without selling their digital assets. The objective was to diversify investments while maintaining exposure to cryptocurrency through a large-scale, non-recourse lending structure.
Transactions of this size present challenges beyond simply sourcing finance. The pool of lenders capable of providing institutional-scale crypto-backed facilities is limited, particularly where borrowers require specific pricing, institutional custody arrangements and the ability to complete without syndicated funding. In addition, lenders may undertake extensive due diligence on the source of digital assets, ownership verification and custody arrangements before approving facilities of this scale.
The client was introduced to Enness by a professional adviser who required discretion, efficient execution and access to specialist institutional lenders with experience in large cryptocurrency-backed lending.
Drawing on its international lender network, Enness identified a funding partner capable of providing a circa £100M rolling non-recourse facility secured against the client's Bitcoin holdings. The proposed terms included a 70% loan-to-value structure with a fixed annual interest rate of 6.5%, supported by institutional custody arrangements and without the need for lender syndication.
Enness coordinated the verification process covering the client's cryptocurrency holdings and worked with the borrower and lender throughout the due diligence process. The proposed structure provided access to liquidity without requiring the client to dispose of the underlying Bitcoin holdings.
This case demonstrates the specialist considerations involved in institutional crypto-backed lending. For ultra-high-net-worth clients seeking liquidity against significant digital asset holdings, lender appetite, asset verification, custody arrangements, loan-to-value requirements and the structure of the facility can all form part of the lending assessment.
CRYPTO-BACKED LENDING CARRIES SIGNIFICANT RISKS. DIGITAL ASSET VALUES CAN FALL RAPIDLY, AND ADDITIONAL COLLATERAL OR LIQUIDATION MAY BE REQUIRED IF LTV THRESHOLDS ARE EXCEEDED.
ENNESS GLOBAL IS A CREDIT BROKER AND DOES NOT PROVIDE INVESTMENT OR CRYPTOCURRENCY ADVICE. LENDING IS SUBJECT TO STATUS AND LENDER CRITERIA.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
