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 digital asset infrastructure company, delivering custody, wallets, staking, trading, financing, and settlement services from regulated cold storage. Since our founding in 2013, we have been focused on accelerating the transition of the financial system to a digital asset economy. With a global presence and multiple regulated entities, BitGo serves thousands of institutions, including many of the industry's top brands, exchanges, and platforms, and millions of retail investors worldwide. For more information, visit www.bitgo.com.
©2025 BitGo, Inc. (collectively with its parent, affiliates, and subsidiaries, “BitGo”). All rights reserved. BitGo Bank & Trust, National Association (“BitGo Bank & Trust”) is a national trust bank chartered and regulated by the Office of the Comptroller of the Currency (OCC). BitGo Bank & Trust is a wholly-owned subsidiary of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, California. Other BitGo entities include BitGo, Inc. and BitGo Prime LLC, each of which is a separately operated affiliate of BitGo Bank & Trust.
BitGo does not offer legal, tax, accounting, or investment advisory services. The information contained herein is for informational and marketing purposes only and should not be construed as legal, tax, or investment advice. You should consult with your own legal, tax, and investment advisor for questions about your specific circumstances.
Digital assets are subject to a high degree of risk, including the possible loss of the entire principal amount invested. Past performance and illustrative examples do not guarantee future results. The value of digital assets can fluctuate significantly and may become worthless. No BitGo communication is intended to imply that any digital asset services are low-risk or risk-free. BitGo is not a registered broker-dealer and is not a member of the Securities Investor Protection Corporation (“SIPC”) or the Financial Industry Regulatory Authority (“FINRA”). Digital assets held in custody are not guaranteed by BitGo and are not subject to the insurance protections of the Federal Deposit Insurance Corporation (“FDIC”) or SIPC. Custody and other digital asset services are subject to eligibility, jurisdictional, and regulatory restrictions. Availability of specific products and services may vary by location and entity.
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