A Bitcoin loan is a specialised form of lending where a borrower pledges their Bitcoin holdings as collateral to access liquidity. The borrower retains ownership of the Bitcoin and continues to benefit from any price appreciation, while the lender secures the loan against the portfolio.
Bitcoin loans are typically short-term bridging facilities, although some lenders may offer longer-term options. The Bitcoin is usually held in secured third-party custody or a lender-controlled wallet for the duration of the loan.
Bitcoin loans operate similarly to other asset-backed loans, but with key differences:
| Feature | Bitcoin Loans | Traditional Asset-Backed Loans |
| Speed | Can be arranged in days | Typically 4–6 weeks |
| Liquidity | Collateral can be liquidated instantly | Real estate or other assets take months to liquidate |
| Volatility | High price fluctuations → lower LTV & stricter margin calls | Relatively stable collateral → higher LTV & flexible terms |
| Pricing | Higher interest rates due to risk | Lower interest rates depending on asset |
| Documentation | Lightly regulated, faster processes | More formal, extensive documentation |
| Use | Best for short-term liquidity | Often long-term financing (e.g., mortgages) |
We leverage our network to source the best Bitcoin lending products from specialist lenders, ensuring competitive pricing and flexible terms.
Our team has in-depth knowledge of the Bitcoin lending market in the UK and Europe, enabling us to advise clients on suitable solutions and navigate complex transactions.
We provide independent, situation-specific advice to ensure our clients’ needs are met, their risks managed, and their financial strategies aligned.
Loan amounts are generally dictated by the lender’s LTV policy. Most lenders offer maximum LTVs around 50%, although higher LTVs may be possible with diversified collateral or additional security packages.
If the price drops suddenly:
Yes. Bitcoin-backed loans are commonly used by corporates, founders, and high-net-worth individuals, enabling access to liquidity without liquidating Bitcoin holdings.