- Client: UK-resident high-net-worth individual with significant cryptocurrency holdings
- Requirement: Circa £500K liquidity for a UK residential property purchase without selling cryptocurrency
- Solution: Specialist crypto-backed lending facility, subject to lender criteria and due diligence
The client was an internationally connected individual resident in the UK with significant wealth, a substantial proportion of which was held in cryptocurrency. The client required approximately £500K to support the purchase of a UK residential property and wanted to explore a crypto-backed lending structure rather than immediately selling digital assets.
The transaction presented additional challenges around source-of-wealth verification. Historical cryptocurrency acquisition records required reconstruction to provide the level of documentation required by potential lenders. The complexity of the client's digital asset history also meant that a number of conventional lenders were unable to consider the application within their standard underwriting frameworks.
Enness Global worked with the client to organise the available financial information and present a clear source-of-wealth profile for lender consideration. The transaction was then positioned with a specialist lender experienced in crypto-backed lending and enhanced due diligence.
A facility of approximately £500K was structured against eligible digital assets, subject to lender approval, valuation, custody arrangements and the final terms of the facility. The structure provided an alternative route to property finance without requiring an immediate sale of the client's cryptocurrency holdings.
The solution supported the client's property acquisition while providing access to liquidity against existing digital assets. The case demonstrates how specialist crypto-backed lending can provide alternative financing options for high-net-worth clients whose wealth is concentrated in digital assets and whose circumstances may fall outside conventional lending criteria.
ENNESS DOES NOT PROVIDE ADVICE OR RECOMMENDATIONS ON CRYPTOCURRENCY, OTHER DIGITAL ASSETS, SECURITIES-BACKED LENDING OR INVESTMENTS. LENDER INTRODUCTIONS ARE UNREGULATED. CRYPTOCURRENCY VALUES CAN BE HIGHLY VOLATILE. CRYPTO-BACKED BORROWING MAY INVOLVE MARGIN CALLS, ADDITIONAL COLLATERAL REQUIREMENTS OR REPAYMENT IF ASSET VALUES FALL. LENDING TERMS, CUSTODY ARRANGEMENTS AND AVAILABILITY ARE SUBJECT TO LENDER CRITERIA AND INDIVIDUAL CIRCUMSTANCES.
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Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
