# Borrow against your crypto. Keep your upside.

Access USD liquidity without selling — no taxable event, open terms, and competitive rates.

Your lineIllustrative

$420,000

available against $1,000,000 in BTC collateral

Collateral **15.0 BTC**  
Taxable event **Generally may not be a taxable sale; consult tax adviser.**

[Try the loan calculator](https://www.abra.com/products/crypto-backed-loans#calculator)

**BTC · ETH** Collateral  
**4.33% APY[1](https://www.abra.com/products/crypto-backed-loans#footer-disclosures)** Updated Aug 7, 2026  
**Up to ~50%** Loan-to-value  
**Open-term** No fixed maturity  
**$0** Prepayment fee

## How it works

### Liquidity, without letting go.

From collateral to cash — in four steps.

1. ### Pledge collateral  
   Deposit BTC or ETH as collateral for your line.

2. ### Draw USD  
   Borrow up to your loan-to-value limit in dollars.

3. ### Use the liquidity  
   Spend or invest — borrowing isn’t a taxable event.

4. ### Repay anytime  
   Open-term with no prepayment fee; reclaim your collateral.

## Sell vs. borrow

## Get the cash. Keep the coins.

|  | Sell your BTC | Borrow with Abra |
| --- | --- | --- |
| Access USD liquidity | Yes | Yes |
| Keep your Bitcoin | No | Yes★ |
| Triggers a taxable event | Yes | No★ |
| Keep upside exposure | No | Yes★ |

Illustrative comparison, not tax or investment advice. Loans involve risk, including potential liquidation of collateral. Consult your own advisor.

## Loan calculator

### See what you could borrow.

Adjust your collateral and LTV. Illustrative only — subject to approval.

**Collateral asset**

BitcoinEthereum

**Collateral value (USD)**

$

**Loan-to-value:** 42%  
ConservativeMax ~50%

You could borrow up to

$420,000  
against $1,000,000 in BTC

Taxable event **None**  
Term **Open**

## Understand the risk

### Assessing the product.

#### Crypto-backed loans involve risk, including liquidation.

Loans are overcollateralized. Digital-asset prices are volatile; if your collateral’s value falls below required thresholds, you may face a margin call and your collateral may be liquidated — potentially at an unfavorable time. Interest accrues while the loan is outstanding. Nothing here is tax, legal, or investment advice.

## FAQ

### Questions, answered.

**What can I borrow against?**  
You can pledge Bitcoin (BTC) or Ethereum (ETH) as collateral for a USD loan. Additional assets may be supported over time.

**How much can I borrow?**  
Up to your loan-to-value (LTV) limit — generally around 50% of your collateral’s value. A more conservative starting LTV leaves more buffer against price moves.

**What are the fees associated with the loan?**  
Loan origination has a 1.00% fee on the loan amount.  
A 0.20% fee per year is assessed on the loan collateral.  
For BTC collateral, there is a wrapping and unwrapping fee of <0.25% that enables the BTC to be deposited into DeFi pools.

**What happens if my collateral falls in value?**  
Loans are overcollateralized. If the collateral value falls below required thresholds you may receive a margin call, and collateral can be liquidated to protect the loan. Maintaining a lower LTV reduces this risk.

**Is borrowing a taxable event?**  
Taking a loan against your crypto is generally not a sale, so it typically does not trigger a taxable event. This is not tax advice — consult your advisor for your situation.

**Is there a fixed repayment date?**  
No. Loans are open-term with no fixed maturity and no prepayment fee. Interest accrues while the loan is outstanding.

### Learn more about crypto-backed lending

[Perspective **Compounding Wealth Scenario: Maximize Yield**](https://www.abra.com/insights/compounding-wealth-with-yield)  
[Perspective **Dollar Yield: Considerations to Get Maximum Return From Cash**](https://www.abra.com/insights/dollar-yield-compounding-considerations)  
[Research Report **The $124 Trillion Wealth Transfer: Implications for Digital Asset Integration in Wealth Management**](https://www.abra.com/insights/124t-wealth-transfer-report)  
[Considerations **Determining Your Digital Asset Allocation: A Strategic Guide**](https://www.abra.com/insights/determining-your-digital-asset-allocation-a-strategic-guide)  
[News **Empower wealth management through SMAs as professional investor participation soars**](https://www.abra.com/insights/empower-wealth-management-through-smas-as-professional-investor-participation-soars)  
[Perspective **How to Custody Digital Assets**](https://www.abra.com/insights/how-to-custody-digital-assets)

## Access liquidity without selling.

Talk to our team [Open an account](https://app.abra.com/register)

Loans involve risk including liquidation of collateral. Not tax advice. Registration as an investment adviser does not imply endorsement by the SEC.