Figure Lending LLC has launched a cryptocurrency-backed lending product that allows borrowers to use Bitcoin, Ethereum, or Solana as collateral and receive cash up to 75% of the collateral's value while keeping ownership of their tokens. The loan is generally not considered a sale, so it typically does not trigger a capital gains event. Figure Lending advises borrowers to compare maximum loan-to-value ratios, fixed versus floating rates, regulatory licensing, and liquidation terms. The lender offers fixed-rate loans with a 12-month term and a maximum APR of 12.62%, with same-day funding and no credit score requirement; approval is based on the collateral. An optional liquidation protection feature, available in select states, can postpone liquidation within the loan term if prices drop, but late loans may still be liquidated. The feature does not cover non-payment, default, or other violations, and falling crypto prices can still trigger margin calls.
Figure Lending LLC has rolled out a crypto-backed lending product, Decrypt reports. Borrowers can pledge Bitcoin, Ethereum, or Solana and get cash for as much as 75% of the collateral’s value, while still keeping ownership of their tokens. The company says the loan usually is not treated as a sale, so it generally does not trigger a capital gains event.
Figure Lending tells borrowers to look closely at the maximum loan-to-value ratio, fixed versus floating rates, regulatory licensing, and liquidation terms. Its own loans come with a fixed interest rate, a 12-month term, and a maximum APR of 12.62%. And the lender says it can fund loans the same day, does not require a credit check, and makes approvals based on the collateral itself.
The firm also has an optional liquidation protection feature in certain states. A small buffer. That feature can delay liquidation during the loan term if prices fall. But if a loan goes overdue, liquidation can still happen. The protection does not cover non-payment, default, or other violations of the loan terms, and falling crypto prices can still set off margin calls.
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