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.
How Figure is Democratizing Crypto-as-Collateral for Mainstream Users
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…
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