Markets can be volatile and asset holders may find themselves in need of cash to meet short-term obligations. However, selling valuable crypto assets to raise cash can trigger capital gains taxes and cut off future upside potential. BitGo’s crypto-backed loans provide a smarter solution – borrow dollars against your digital assets (such as Bitcoin, Ethereum, and Solana) instead of selling them. This strategy unlocks cash flow in a tax-efficient manner while allowing you to maintain your crypto exposure and continue benefiting from future appreciation.
Borrow Against Crypto for a Tax-Efficient Strategy
Borrowing against your digital asset holdings is an increasingly popular strategy - particularly during tax season. Rather than liquidating crypto (and incurring taxable gains), you can get cash by using your Bitcoin, Ethereum, Solana, or other digital assets as collateral for a loan. In effect, you receive dollar liquidity to cover your needs while deferring any sale of your investments.
Exclusive Lending for Accredited Investors and Institutions
BitGo’s lending services are designed exclusively for institutional clients and accredited investors—those with over $1M in liquid net assets. Loans are overcollateralized, with no reliance on borrower credit scores or traditional underwriting. Whether you're a hedge fund, family office, or HNWI, BitGo structures loans with your specific profile and risk preferences in mind. Our team offers bespoke service and support, ensuring a seamless experience for qualified participants.
Backed by BitGo’s Trusted Security and Credibility
When choosing a crypto-backed loan provider, security and trust are paramount, as the provider is holding your collateral. You're entrusting them with valuable digital assets, so it's essential to work with a lender that offers robust custody solutions, transparent terms, and a solid track record in the space.. BitGo is a name synonymous with institutional-grade digital asset custody and financial services. As a regulated, qualified custodian with a decade-long track record, BitGo offers an unrivaled foundation of security for your collateral. Since its founding in 2013, BitGo has never experienced a security breach. We currently safeguard over $100B in digital assets for leading hedge funds, exchanges, and family offices worldwide.
For added assurance, BitGo maintains a $250M insurance policy on custodial assets and operates as a regulated, bankruptcy-remote trust company with regular audits to meet stringent compliance requirements. Your collateral is held with the utmost care – kept in cold storage and never rehypothecated – giving you peace of mind while you put borrowed funds to work.
Flexible Collateral Options and Competitive Rates
One of the key advantages of BitGo’s lending program is its flexibility in accepted collateral and loan structuring. BitGo accepts a range of high-quality digital assets as collateral, including BTC, ETH, SOL, and more. Loans are over-collateralized for risk management, with conservative LTV ratios (often ~50–70% to start) that provide a comfortable buffer against market volatility. BitGo can also customize loan parameters (LTV, term length, etc.) on a case-by-case basis to suit your needs.
Importantly, interest rates are competitive and market-driven. BitGo’s deep network of liquidity providers ensures that borrowers enjoy competitive rates. BitGo’s transparent and stable approach to pricing, helps build long-term trust and strong relationships with our clients.
Maintain Crypto Exposure While Meeting Liquidity Needs
This lending offering is ideal for scenarios where you need short-term liquidity but do not want to reduce your crypto holdings. For example, if you face a large tax payment, need a downpayment for a house, or want to seize an attractive investment opportunity, you can borrow the cash to cover it instead of selling your crypto. You later repay the loan, and your digital assets stay in your portfolio throughout. Likewise, an institution can obtain working capital or fund a new investment through a crypto-backed loan without having to sell any core holdings.
In all cases, you effectively keep “HODLing” your crypto for the long run while solving immediate cash flow needs. This balance of liquidity and asset retention turns your digital assets into a productive source of financing.
Get Started
BitGo’s crypto-backed loan offering is a secure, flexible, and tax-advantaged solution that gives you liquidity without compromising your market position. BitGo’s experienced team is ready to work with you to tailor a financing solution that fits your needs.
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About BitGo
BitGo is the leading infrastructure provider of digital asset solutions, delivering custody, wallets, staking, trading, financing, and settlement services from regulated cold storage. Since our founding in 2013, we have focused on enabling our clients to securely navigate the digital asset space. With a large global presence through multiple regulated entities, BitGo serves thousands of institutions, including many of the industry's top brands, exchanges, and platforms, as well as millions of retail investors worldwide. As the operational backbone of the digital economy, BitGo handles a significant portion of Bitcoin network transactions and is the largest independent digital asset custodian, and staking provider, in the world. For more information, visit www.bitgo.com.
©2025 BitGo Inc. (collectively with its affiliates and subsidiaries, “BitGo”). All rights reserved. BitGo Trust Company, Inc., BitGo Inc., and BitGo Prime LLC are separately operated, wholly-owned subsidiaries of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, CA. No legal, tax, investment, or other advice is provided by any BitGo entity. Please consult your legal/tax/investment professional for questions about your specific circumstances. Digital asset holdings involve a high degree of risk, and can fluctuate greatly on any given day. Accordingly, your digital asset holdings may be subject to large swings in value and may even become worthless. The information provided herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. BitGo is not directing this information to any person in any jurisdiction where the publication or availability of the information is prohibited, by reason of that person’s citizenship, residence or otherwise.