ChainCatcher says crypto lending company Figure Lending LLC has started offering loans backed by cryptocurrency. Borrowers can put up Bitcoin, Ethereum, or Solana as collateral and get cash worth up to 75% of that collateral’s value, while still keeping ownership of their tokens.
The firm says borrowing usually is not treated as a sale, so it generally will not set off a capital gains event. Figure Lending LLC tells borrowers to look closely at maximum loan-to-value ratios, fixed versus floating rates, regulatory licensing, and liquidation terms.
As for the product itself, Figure offers fixed rates, a 12-month loan term, and a maximum APR of 12.62%. Same-day funding is available. And no credit score is required; approval depends on the collateral alone.
Figure also offers an optional liquidation protection feature in select states. It can delay liquidation during the loan term if prices drop. But liquidation may still happen if the loan turns delinquent. The feature does not cover non-payment, default, or breaches of loan terms, and a drop in crypto asset prices can still trigger a margin call.