- Nationality/Residency: UK national and UK resident
- Loan Amount: Circa £550,000
- Loan-to-Value (LTV): 50%
- Interest Rate: Competitive (flexible facility)
In this case, Enness was approached by a UK national and resident seeking to raise capital against their Bitcoin portfolio. The client held their Bitcoin securely in cold storage and wanted to explore ways of accessing liquidity without having to sell their digital assets.
The main challenge was the limited number of lenders willing to accept Bitcoin as collateral, particularly on competitive terms. Traditional lenders generally do not accept cryptocurrency as security, while specialist providers may apply higher interest rates or more restrictive lending structures.
The security and custody of the client's Bitcoin were also important considerations. The client wanted a financing structure that provided appropriate safeguards around their digital assets while giving them access to the required capital. Flexibility was particularly important, as the client wanted to avoid being forced to liquidate their holdings simply to meet the financing requirements.
Enness moved quickly to identify a suitable specialist lender and negotiated a flexible facility of approximately £550,000 at 50% LTV and a competitive interest rate. The structure was designed around the client's requirements and the lender's security protocols.
The transaction progressed efficiently, with suitable terms sourced and introductions between the client and lender arranged within approximately one week. This enabled the client to access liquidity against their Bitcoin holdings while retaining their underlying digital assets, subject to the agreed lending and custody arrangements.
This case demonstrates the specialist nature of crypto finance and the importance of working with a lender that understands cryptocurrency-backed lending. Enness has access to more than 500 lenders across global markets, allowing us to explore bespoke financing structures for clients with non-standard assets.
For individuals or corporate clients holding substantial cryptocurrency portfolios, Enness can help explore financing options designed around their asset position and liquidity requirements. If you or your clients are considering crypto-backed lending and are finding it difficult to secure suitable terms, speak to a finance specialist to discuss your requirements.
Disclaimer:
This case study does not constitute financial advice. Enness does not give advice or recommendations on Securities-Backed Lending or investments, and lender introductions are unregulated. Cryptocurrency values can be highly volatile, and crypto-backed lending may involve margin calls, additional collateral requirements or the potential loss of collateral if the borrower cannot meet the agreed terms. We recommend seeking appropriate professional advice before making decisions involving digital assets.
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.
