Crypto Lenders Cater to Long-Term Holders with Tax-Efficient Loans

Crypto-backed loans are allowing long-term holders to access cash without triggering capital gains tax, making it a cost-effective way to unlock liquidity from their assets. A wide range of loan providers has emerged in recent years, including DeFi protocols, centralized exchanges, and purpose-built credit infrastructure blockchains.

We compared five leading crypto loan platforms: Figure, Nexo, Ledn, Aave, and several others. Figure offers U.S.-regulated loans with low interest rates, up to 75% LTV ratio, and same-day approval. Nexo supports a wide range of collateral assets, including dozens of cryptocurrencies, but its best rates are reserved for NEXO token holders.

Ledn specializes in bitcoin-backed loans, having discontinued support for other assets. Aave is the largest decentralized lending protocol, allowing users to permissionlessly borrow against bitcoin without selling, as well as a wide range of other assets. Aave facilitates instant crypto loans with no credit check and no KYC.