In brief
- Crypto-backed loans give holders cash against their coins without selling, generally avoiding a capital-gains event.
- Figure advises borrowers to compare four things when shopping: max loan-to-value, fixed vs. variable rate, licensing, and liquidation terms.
- Licensing and liquidation protection matter more than the headline rate, says the crypto lender, and the product suits only holders comfortable with margin-call risk.
If you believe in your crypto, selling it to cover a short-term cash need is the one move you'd rather not make. Sell, and you trigger a taxable event and give up any future upside. A crypto-backed loan offers another path: borrow cash against your holdings while keeping every coin.
Here's the mechanics. You pledge Bitcoin, Ethereum, or Solana as collateral, and a lender advances you cash—with Figure it’s up to 75% of your collateral's value*. You keep ownership of the crypto the entire time. No sale, and because borrowing isn't a sale, generally no capital-gains event (this isn't tax advice—check with a professional on your situation).
The category has matured fast, and not every lender is built the same. Four things separate a serious platform from a risky one — and they're exactly what you should compare when shopping for the best crypto-backed loan:
Fixed vs. variable rates. Some lenders quote a low teaser rate that floats with the market. Figure's crypto-backed loan carries a fixed rate* for the life of the loan, so your payment doesn't move when the market does.
Regulation and licensing. The CeFi lender collapses of 2022 taught the market a hard lesson: "crypto lender" and "licensed lender" are not the same thing. Figure Lending LLC is a licensed lender (NMLS #1717824)—a materially different risk profile than an unregulated offshore platform holding your coins.
Speed without a credit drag. Figure funds same-day and requires no credit score. Approval is based on your collateral, not your FICO.
Downside protection. Crypto is volatile, and a sharp price drop can trigger liquidation. Figure offers optional Liquidation Protection** (available in select states) that defers price-based liquidation for the loan term—so a temporary dip doesn't force a sale at the worst possible moment.
Rate matters, but it's the last thing that protects you when volatility hits. The lender's licensing and its liquidation terms** are what actually stand between you and a forced sale. So compare all four: maximum loan-to-value, fixed vs. variable rate, regulatory standing, and what happens to your collateral if the market moves against you.
Crypto-backed loans aren't for everyone—if a margin call would keep you up at night, this isn't your tool. But for long-term holders who need liquidity without selling, a fixed-rate*, fully licensed loan is one of the most efficient ways to put your crypto to work while keeping it.
Learn more about Figure's crypto-backed loan and earn $50 when you deposit $500.
Disclaimer
©2026 Figure Lending LLC
Figure Lending LLC dba Figure 650 S. Tryon Street, 8th Floor, Charlotte, NC 28202. (888) 819-6388. NMLS ID 1717824. For licensing information go to www.nmlsconsumeraccess.org Equal Opportunity Lender.
This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.
