Key Details:
- 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 £1 million 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.
Important Information
Enness Global does not provide advice or recommendations on cryptocurrency, digital assets, investments or Securities-Backed Lending. Crypto-backed lending and lender introductions may be unregulated, and the regulatory protections available to regulated financial products may not apply. Clients should obtain independent professional advice regarding their individual circumstances, tax position and investment decisions.
Risk Warning
The value of cryptocurrencies and other digital assets can be highly volatile and may fall significantly. If the value of assets pledged as security falls, the lender may require additional collateral, partial repayment or the sale of pledged assets, subject to the terms of the facility. Failure to meet repayment obligations may result in the loss of secured assets. Cryptocurrency transactions and holdings may also involve additional custody, liquidity, regulatory and counterparty risks.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax, investment or cryptocurrency advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, asset suitability, valuation, custody arrangements, jurisdiction and lender criteria. Loan amounts, lending structures and outcomes are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.
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.
