Key Details:
- 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 £500,000 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 £500,000 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.
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, legal and tax advice regarding their individual circumstances and requirements.
Risk Warning
The value of cryptocurrency and other digital assets can be highly volatile and may fall significantly. Where digital assets are used as security for borrowing, a fall in their value may result in additional collateral requirements, 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. Digital assets may also carry additional custody, liquidity, counterparty and regulatory 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.
