Key Details:
- Client: UK-based ultra-high-net-worth individual with significant cryptocurrency holdings
- Requirement: Circa £1M liquidity for UK property purchase without selling crypto
- Solution: Non-recourse crypto-backed facility with institutional-grade custody
A UK-based ultra-high-net-worth individual with a substantial cryptocurrency portfolio approached Enness to secure liquidity for a UK property acquisition. The client wished to avoid selling digital assets, both to preserve long-term investment exposure and to avoid triggering a taxable disposal event.
The requirement was for circa £1 million of liquidity, structured in a way that aligned with the client’s preference for flexibility, speed, and asset preservation. Traditional financing routes were not suitable, as the client’s wealth was primarily held in cryptocurrency rather than conventional income or liquid fiat assets.
Custody was the central challenge. Many crypto-backed lenders require assets to be transferred into lender-controlled wallets, which can present concerns around control, security, and counterparty risk—particularly for clients with significant holdings. In this case, the client required an institutional-grade custody arrangement that maintained asset security while satisfying lender requirements.
Enness identified a regulated lending partner capable of delivering a non-recourse crypto-backed revolving facility with institutional custody. The structure ensured that the client retained a high degree of control over their assets, while the lender’s risk was mitigated through a clearly defined operational and security framework.
Subject to lender approval and prevailing asset conditions, facilities of this nature can support residential property acquisitions. In this instance, the solution aligned the client’s liquidity needs with their asset security priorities, enabling access to capital without disrupting their broader investment strategy.
The outcome provided efficient access to funding while preserving the integrity of the client’s cryptocurrency holdings. The case highlights how structured crypto-backed lending can be used to unlock liquidity for real estate transactions, particularly where discretion, speed, and asset control are key considerations.
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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.
