- Client: UK-based ultra-high-net-worth individual with significant cryptocurrency holdings
- Requirement: Circa £1M liquidity for a UK property purchase without selling cryptocurrency
- Solution: Crypto-backed revolving facility with institutional-grade custody, subject to lender criteria
A UK-based ultra-high-net-worth individual with a substantial cryptocurrency portfolio approached Enness Global seeking liquidity to support a UK property acquisition. The client wished to avoid selling digital assets, allowing them to maintain exposure to their existing portfolio while accessing capital for the purchase.
The requirement was for circa £1M of liquidity, structured around the client's preference for flexibility, speed and asset preservation. Traditional financing routes were not suitable for the client's circumstances, as a significant proportion of their wealth was held in cryptocurrency rather than conventional income or cash assets.
Custody was a key consideration. Crypto-backed lending can involve transferring digital assets into a custody arrangement that provides security for the lender, creating additional considerations around asset control, security and counterparty exposure. In this case, the client required an institutional-grade custody structure capable of meeting lender requirements while providing an appropriate framework for the underlying assets.
Enness Global identified a specialist lending partner able to consider a crypto-backed revolving facility with institutional custody. The proposed structure was designed to provide access to liquidity against eligible digital assets, with the final terms and borrowing capacity subject to lender approval, asset values, custody arrangements and prevailing market conditions.
Subject to lender approval and the relevant transaction structure, crypto-backed facilities can provide an alternative source of liquidity for clients seeking to fund property acquisitions without immediately selling digital assets. In this instance, the proposed solution was aligned with the client's objective of accessing capital while maintaining their broader investment position.
The transaction demonstrates how specialist crypto-backed lending can provide alternative liquidity solutions for high-net-worth clients with substantial digital asset holdings. By accessing specialist lenders and structuring the security and custody arrangements appropriately, Enness Global can help clients explore financing options where conventional lending may not be suitable.
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.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
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.
