Figure cryptocurrency mortgage loans provide up to 75% of the collateral value

Odaily News: Crypto lending firm Figure Lending LLC offers cryptocurrency-backed loans, allowing borrowers to use Bitcoin, Ethereum, or Solana as collateral and receive cash of up to 75% of the collateral value while retaining ownership of their tokens. Such loans generally do not constitute a sale and typically do not trigger a capital gains event. Figure Lending LLC notes that borrowers should compare maximum loan-to-value ratios, fixed or variable interest rates, regulatory licensing, and liquidation terms. The firm offers fixed-rate loans with a 12-month term, a maximum APR of 12.62%, and supports same-day funding without requiring a credit score, with approval based on the collateral. Figure offers an optional liquidation protection feature available in certain states, which can defer liquidation during the loan term in the event of price declines; however, liquidation may still occur if the loan becomes delinquent. This feature does not apply to non-payment, default, or violation of loan terms, and declines in crypto asset prices may still trigger margin calls. (Decrypt)