Crypto-Backed Lending: Unlock Liquidity from Your Digital Assets

The world of finance is rapidly evolving, and cryptocurrency has emerged as a major asset class for both investors and businesses. But what if you need liquidity without selling your crypto holdings? With Crypto-Backed Lending from BridgeCap, you can access cash by leveraging your Bitcoin, Ethereum, and other approved digital assets as collateral.

What is Crypto-Backed Lending?

Crypto-backed lending allows you to borrow funds against the value of your digital assets without having to sell them. By depositing your crypto into a secure, insured custodian account, BridgeCap can offer funding based on a percentage of your portfolio’s market value.

How It Works:

1. Collateral Deposit: You transfer supported cryptocurrencies like Bitcoin or Ethereum into our secure custodian wallet.
2. Loan-to-Value (LTV) Determination: We provide funding up to a certain LTV ratio (commonly 30-70%) to protect against market volatility.
3. Funding Disbursement: Receive cash while maintaining ownership of your crypto.
4. Collateral Management: If crypto values fluctuate, margin requirements are monitored to prevent liquidation.

Advantages of Crypto-Backed Lending

• Maintain Ownership: Keep exposure to crypto upside while accessing liquidity.
• No Credit Checks: Approval is based on collateral value, not credit scores.
• Fast Funding: Receive funds within days of collateral verification.
• Flexible Use: Use funds for business expansion, real estate, or other investments.

Use Cases

Crypto-backed lending is popular among entrepreneurs and investors who want to:

• Fund real estate purchases or improvements
• Invest in new ventures without selling long-term crypto holdings
• Bridge liquidity gaps while awaiting other financing
• Combine with Asset-Based Lending or SBA 7(a) loans for diversified capital strategies

Risk Management

BridgeCap ensures safe custody of your digital assets and manages risk through conservative LTV ratios and real-time monitoring. In the event of a significant market drop, you may add more collateral or repay part of the advance to maintain the position.

Frequently Asked Questions

Which cryptocurrencies are accepted?
We currently accept Bitcoin, Ethereum, and select stablecoins.

Do I need to sell my crypto?
No. You retain ownership while we hold the collateral in secure custody.

What is the typical LTV ratio?
We typically offer 30-70% LTV depending on the asset and market conditions.

Conclusion

Crypto-Backed Lending is an innovative way to unlock liquidity without giving up your crypto assets. BridgeCap combines secure custody, flexible terms, and fast funding to help you leverage your digital portfolio for business and investment opportunities.

Explore complementary solutions like Revenue-Based Financing and SBA 7(a) Lending to build a complete capital strategy for your business.