Crypto holders can access immediate liquidity by pledging digital assets as collateral for cash loans—without selling a single sat.
Figure, a prominent lender, offers up to 75 percent of the collateral's value. Borrowers receive funds in U.S. dollars; international borrowers can receive USDC stablecoin. That structure sidesteps the taxable event that a direct crypto sale would trigger.
Borrowers retain full ownership of their underlying cryptocurrency throughout the loan term, keeping exposure to any future price appreciation intact. Short-term liquidity needs stay separate from long-term position-holding.
Selling forces you out of a position and crystallizes capital gains liability. A crypto-backed loan keeps market exposure alive while freeing up capital—a critical distinction for holders sitting on large unrealized gains.
Sam Mei, an expert on these financial products, said Figure provides a direct avenue for crypto investors to deploy their holdings for capital at competitive interest rates.
Figure accepts Bitcoin and Ethereum as collateral—two of the largest cryptocurrencies by market capitalization. Funds can go toward other investments, personal expenditures or any capital deployment an investor chooses, all while the core crypto portfolio stays untouched.
