Enness Global assisted a high-net-worth Spanish national and Dubai resident in securing a circa £3 million crypto-backed loan to support the purchase of a luxury property in Spain.
The client held a substantial Bitcoin portfolio and wanted to access liquidity without selling their cryptocurrency holdings. A non-recourse structure was preferred, allowing the client to retain exposure to the underlying digital assets while using their value to support the property acquisition.
The transaction was highly time-sensitive, with the client facing a two-week deadline to complete the purchase. Traditional lending routes were unlikely to accommodate the required timeframe, particularly given the additional underwriting, custody and source-of-wealth considerations associated with crypto-backed lending.
Enness Global worked with a specialist lending partner to structure a bespoke facility secured against the client’s Bitcoin holdings. The circa £3 million facility was arranged at approximately 70% loan-to-value on a two-year fixed-term basis, subject to lender criteria and prevailing market conditions.
The underlying cryptocurrency was held with an institutional-grade custody provider, with the structure designed to keep the assets segregated throughout the facility term. This provided the lender with an established security framework while allowing the client to maintain their cryptocurrency exposure rather than liquidating the holdings to fund the purchase.
Enness Global coordinated the lender, custody arrangements and transaction requirements to meet the compressed completion timeframe. The facility was completed in approximately one and a half weeks, enabling the client to access the required capital within the agreed deadline and proceed with the Spanish property acquisition.
The solution demonstrated how specialist crypto-backed lending can provide an alternative source of liquidity for high-net-worth clients whose wealth is concentrated in digital assets. By using cryptocurrency as collateral rather than selling it, borrowers may be able to access capital while retaining exposure to the underlying asset, subject to lender criteria, market conditions and the specific structure of the facility.
This case also highlights the importance of execution when financing property acquisitions with tight completion deadlines. Specialist lender relationships, appropriate custody arrangements and an understanding of the client’s wider financial position were all important in structuring the transaction within the required timeframe.
Crypto Disclaimer:
Enness does not give crypto advice or recommendations and you should seek professional advice to discuss your personal circumstances and requirements. Cryptoassets are highly volatile and can fall significantly in value. Borrowing against cryptoassets also carries additional risks, including the potential requirement to provide additional collateral or repay borrowing if the value of the underlying assets falls.
Securities Backed Lending Disclaimer:
Enness does not give advice on Securities Backed Lending or investments, and lender introductions are unregulated. This case study is for information and illustrative purposes only and nothing contained within should be construed as advice or a recommendation or an invitation to buy or sell securities.
Risk Warning:
Crypto-backed lending carries a risk of loss, including the potential loss or forced sale of secured cryptoassets if repayment obligations are not met. Cryptoassets are high risk and you could lose all the money you invest. You are unlikely to be protected if something goes wrong.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax, investment or cryptoasset advice. Finance is subject to status, underwriting, asset suitability, custody arrangements, jurisdiction and lender criteria. Terms and outcomes will vary depending on individual circumstances and are not guaranteed.
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.
