# Loans · Crypto-backed credit

## 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**
- Bitcoin
- Ethereum

**Collateral value (USD)**

$

**Loan-to-value: 42%**

**Conservative**
**Max ~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.

## Resources

### Learn more about crypto-backed lending

**Insights**  [Getting Started](https://www.abra.com/insights/getting-started)  [How It Works](https://www.abra.com/insights/how-it-works)  [Risk](https://www.abra.com/insights/risk)

### Perspective  **Compounding Wealth Scenario: Maximize Yield**  
 
### Perspective  **Dollar Yield: Considerations to Get Maximum Return From Cash**  
 
### Research Report  **The $124 Trillion Wealth Transfer: Implications for Digital Asset Integration in Wealth Management**  
 
### Considerations  **Determining Your Digital Asset Allocation: A Strategic Guide**   
 
### News  **Empower wealth management through SMAs as professional investor participation soars**  
 
### Perspective  **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.