Key Details
- Client Profile: High-net-worth individual (HNW) investor
- Loan Amount: Circa $750,000
- LTV: 100%
- Interest Rate: Competitive
- Term Length: 12 months
A high-net-worth individual with a diverse portfolio in cryptocurrency approached Enness seeking a solution to unlock liquidity without the need to liquidate their digital assets. The client wished to leverage their holdings in cryptocurrency as collateral for a loan to fund new investments, while keeping their crypto assets intact to benefit from potential future growth.
The key challenge in this case was designing a loan structure that could accommodate the inherent volatility of the cryptocurrency market while providing the client with the liquidity they required. The objective was to secure 100% LTV with favourable terms while managing the associated risks and ensuring that the client’s digital assets remained safeguarded.
Enness collaborated closely with the lender to secure the following terms:
- Loan Amount: Circa $750,000
- Interest Rate: Competitive
- LTV: 100% (full requested loan amount)
- Margin Call: High, creating a buffer to manage collateral value fluctuations
- Term Length: 12 months
- Lock-Up Period: 12 months, ensuring the collateral remained stable for the loan duration
To minimise risk, the loan was structured with a high margin call, offering protection for the client’s assets should the value of the crypto holdings fluctuate significantly. A custodial agreement was also put in place to safeguard the digital assets during the loan period.
Through its deep expertise in crypto-backed finance and established relationships with crypto lenders, Enness successfully sourced the required funding, allowing the client to preserve their digital assets while accessing the necessary liquidity. The tailored approach ensured the best possible terms for the client, empowering them to leverage their crypto holdings effectively.
This case underscores Enness’s ability to navigate the complexities of crypto-backed lending, attaining bespoke financial solutions for high-net-worth individuals seeking to leverage their digital assets for various investment needs. Contact us today to see if we can achieve similar for you.
Disclaimer: This case study does not constitute financial advice and Enness do not give advice or recommendations on securities or crypto backing financing. We recommend seeking the advice of a wealth manager or professional adviser before investing in digital currencies.
Enness does not give advice on Securities Backed Lending or investments (or Luxury Asset Financing), and lender introductions are unregulated. This case study is for information and illustrative purposes only and nothing contain within should be construed as advice or a recommendation and is not an invitation to buy or sell securities.
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