Figure Crypto-Backed Loan: Borrow Against BTC, ETH, or SOL
Figure's crypto-backed loan lets you borrow US dollars against Bitcoin, Ethereum, or Solana without selling. Loan size depends mainly on the value of your collateral, and Figure also considers your state and credit profile.
How the Figure crypto-backed loan works
The Figure crypto-backed loan is a secured loan where your crypto holdings serve as collateral. Figure's published terms, from its own disclosures:
| Term | Published by Figure |
|---|---|
| Accepted collateral | Bitcoin (BTC), Ethereum (ETH), Solana (SOL) |
| Minimum loan | $5,000, subject to state limits |
| Repayment | 12-month, interest-only term |
| Rates | 8.91% fixed (9.999% APR) at 50% LTV; 11.50% (12.62% APR) up to 75% LTV |
| Origination fee | 1% of the loan amount |
| Maximum initial LTV | Up to 75% |
| Availability | Select states; not available in New York |
| Eligibility | Collateral value, state of residence, and credit profile |
Figure's example: a $10,000 loan at 50% LTV for 12 months at 8.91% with a $100 origination fee has an APR of 9.999%. Terms can change; confirm current terms with Figure before applying.
How the process works
- Deposit BTC, ETH, or SOL into a custody account held by Figure
- Figure sizes the loan based on your collateral value and checks eligibility, including your state and credit profile
- You receive cash funded in US dollars to your bank account
- Your crypto stays locked as collateral until the loan is repaid
- Once the loan is paid off, your crypto is returned in full
Why Figure Loans added a crypto-backed product
Figure Technology Solutions has been a blockchain-first fintech since 2018. The crypto-backed loan reflects its view that assets like Bitcoin and Ethereum have real collateral value and can support consumer credit. For borrowers with meaningful crypto positions, the Figure crypto-backed loan provides liquidity without a taxable sale.
Figure crypto-backed loan vs. selling your crypto
| Factor | Figure Crypto Loan | Selling Your Crypto |
|---|---|---|
| Tax impact | No taxable event | Capital gains tax owed |
| Keep upside? | Yes | No |
| Cost | Interest + fees | Capital gains tax |
| Collateral risk | Liquidation if value drops | None after sale |
| Access speed | Fast (days) | Fast (instant) |
Risks of Figure crypto-backed loans
The main risk is price volatility. If your crypto collateral falls significantly in value, the lender may issue a margin call requiring additional collateral or partial repayment. If the margin call is not met, the collateral can be liquidated — potentially at an unfavorable price. Borrowers should maintain a healthy loan-to-value cushion.
Who should consider a Figure crypto-backed loan
- Long-term BTC, ETH, or SOL holders who need cash for up to 12 months without selling
- Borrowers with lower credit scores who have substantial crypto holdings
- Owners who want to avoid triggering a taxable capital gains event
- Investors who believe their crypto will appreciate during the loan term
How loan-to-value works on a crypto-backed loan
Crypto-backed lenders size your loan as a percentage of your collateral's market value, called the loan-to-value ratio (LTV). Because crypto prices move quickly, LTV changes every day even if you never touch the loan. Lenders set three thresholds: a starting LTV, a margin-call LTV, and a liquidation LTV. Check the lender's current figures before applying, because they differ by lender and can change.
Illustrative example (not the lender's actual terms)
| Scenario | Collateral value | Loan balance | LTV |
|---|---|---|---|
| At closing | $100,000 in BTC | $50,000 | 50% |
| Price falls 28.6% | $71,429 | $50,000 | 70% (example margin call) |
| Price falls 37.5% | $62,500 | $50,000 | 80% (example liquidation) |
In this example, a 29% drop in Bitcoin would trigger a request to add collateral or repay part of the loan, and a 38% drop could lead to a forced sale. Bitcoin has fallen by more than that within weeks several times, which is why a lower starting LTV gives you more room.
Tax basics
Borrowing against crypto is generally not treated as a sale, so taking the loan does not by itself create a capital gain. If your collateral is liquidated, that sale can be a taxable event. Tax treatment depends on your situation, so confirm with a tax professional.
Crypto-backed loan vs. HELOC vs. selling
| Factor | Crypto-backed loan | Figure HELOC | Sell crypto |
|---|---|---|---|
| Collateral | BTC or ETH | Your home | None |
| Credit check | Collateral-based | Yes, 600 minimum score | No |
| Main risk | Liquidation if prices fall | Home is collateral | Tax bill, lost upside |
| Keeps crypto upside | Yes | Yes | No |
| Best for | Short-term liquidity for crypto holders | Homeowners needing a larger fixed-rate amount | When you want out of the position |
Questions to ask before you apply
- What are the starting, margin-call, and liquidation LTVs?
- How much notice do I get before a liquidation, and how can I add collateral?
- Who holds my crypto, and is it rehypothecated or lent out?
- What is the interest rate, and are there origination or early-repayment fees?
- How is my collateral returned when I repay?
Who should avoid a crypto-backed loan
- Borrowers who could not add collateral or repay quickly during a sharp price drop
- Anyone borrowing to buy more crypto, which doubles the downside risk
- Borrowers who need the money for a long period; a fixed-rate HELOC or personal loan may be steadier