Figure Offers Crypto-Backed Loans with Up to 75% LTV and Fixed Rates

If you’re a hodler who hates selling during a dip, crypto-backed loans let you tap into cash without parting with your coins. Instead of selling Bitcoin, Ethereum or Solana—and potentially triggering a taxable event—you pledge them as collateral and borrow against their value. You retain ownership of the crypto while the lender advances cash, giving you liquidity without relinquishing upside (note: this is not tax advice—consult a professional). How crypto-backed loans work - You lock crypto as collateral. The lender advances a percentage of that value (loan-to-value, or LTV). - You keep title to the assets; the loan is a debt, not a sale, so borrowing typically isn’t a capital-gains event. - If the collateral’s price falls enough, the loan can trigger margin calls or liquidations to protect the lender. What to compare before you borrow Not all platforms are equal. Four factors matter most: 1) Maximum LTV — determines how much cash you can get relative to your holdings. Higher LTVs give more liquidity but increase liquidation risk. 2) Fixed vs. variable rate — variable rates can look cheap initially but can rise with markets; fixed rates lock your payment for the life of the loan. 3) Regulatory and licensing status — licensed, regulated lenders have different risk profiles than unregulated offshore platforms. 4) Liquidation mechanics and protections — what happens when prices drop? Does the platform offer tools (or paid protections) to avoid forced sales? Figure’s example: what they offer Using Figure’s crypto-backed loan as a concrete example shows how those variables come together: - Collateral accepted: BTC, ETH, SOL (and other major assets). - Maximum initial LTV: up to 75%. - Rates: available interest rates include 8.91% (9.999% APR) at 50% LTV and 11.50% (12.62% APR) at up to 75% LTV. Maximum APR cited is 12.62% (includes a 1% origination fee). - Term and payments: 12‑month interest-only repayment term; representative example—$10,000 loan at 50% LTV, 8.91% interest with a $100 origination fee (1%): APR 9.999%, monthly interest payment about $74.25. - Fixed rate: Figure offers a fixed rate for the life of the loan, so payments don’t float with the market. - Speed and credit: same‑day funding in many cases and approval tied to collateral value rather than FICO score—no credit-score check required. - Licensing: Figure Lending LLC is a licensed lender (NMLS #1717824), which affects regulatory oversight compared with unlicensed platforms. - Downside protection: optional Liquidation Protection is offered in select states (see below)—it can defer price-based liquidations for the loan term, though it does not protect against missed payments, defaults, or other violations. Liquidations will still occur for delinquency. Important availability, tax and risk notes - Geographic availability is limited. Figure’s crypto loans are offered to U.S. borrowers by Figure Lending LLC but aren’t available to residents of DC, ID, IL, KY, MD, MS, SD, TX, VT, or VA. Liquidation Protection is available in CA, NY, FL, PA, AL, AK, GA, HI, MA, and UT. International and other jurisdictional restrictions also apply. Check the lender’s disclosures for full details. - Tax treatment: borrowing is generally non-taxable, but if collateral is liquidated (including forced sale), that can trigger an IRS taxable event—talk to a CPA. - Market risk: crypto is volatile. A high LTV exposes you to margin calls and forced liquidations when prices fall. If the possibility of a margin call would cause you stress, a crypto-backed loan may not be right for you. Bottom line Crypto-backed loans are a practical tool for long-term holders who want liquidity without selling. But the headline rate is only part of the story. Look at LTV, whether the rate is fixed or variable, the lender’s regulatory status, and the platform’s liquidation policies (and any optional protections). Compare offers carefully and consult legal/tax advisors before borrowing. (Disclosure: The details above reflect Figure’s publicly disclosed terms for its crypto-backed loan product, including NMLS #1717824 and representative rates and fees. This article is informational and not tax, legal, or investment advice.)