Key Takeaways
- Figure crypto-backed loans (CBL) is a borrowing service that lets you access real-world cash by using BTC or ETH as collateral;
- The minimum loan amount starts at $5,000 for US residents, while international users are subject to location-based limits;1
- Each loan has a fixed 3-month term, with interest rates starting from 12.5%.
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As a true HODLer, you believe in the future of digital assets, and you’ve learned to ride out volatility without flinching. But let’s be real, conviction alone won’t pay the rent! That’s where Figure crypto-backed loans step in, offering a smart way to unlock cash so you don’t have to become a liquidity exiter just to keep the lights on.
With no credit score checks and near instant approvals, Figure makes it one of the most convenient ways to access real-world dollars while staying fully invested in cryptocurrency. What’s even better is how simple the process is. You don’t need to be a trading pro or finance guru to use it – just a bit of crypto and a reason to keep holding.
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Table of Contents
What Are Figure Crypto-Backed Loans?
Crypto-backed loans (or CBLs) is a loan offered by Figure Markets that lets you borrow real-world funds by using your Bitcoin or Ethereum as collateral.
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It works a lot like a traditional secured loan (think mortgage or auto loan) where your asset is locked up to guarantee repayment.[1] In this case, the asset just happens to be crypto, and the loan comes in USD or USDC.
The minimum loan amount is $5,000 for US residents, while international borrowers may not different limits.
Your loan amount depends on your collateral, while eligibility is based on your location, credit profile, and other personal details at the time of application.
To give you a sense of what Figure crypto loans are used for, imagine a devout crypto HODLer named Jeff. He’s been stacking Bitcoin for years and has zero plans to sell anytime soon. Even when every chart and YouTube thumbnail is screaming, “NOW is the time to take profits!” Jeff believes in BTC’s long-term future more than short-term noise.
One day, the mining rig he’s been eyeing drops into a limited-time flash sale, and, unfortunately, Jeff’s short on cash.
Instead of dumping his coins or missing out, he turns to Figure crypto-backed loans. He locks up a portion of his BTC, gets instant liquidity, and secures the gear before the deal disappears.
With that move, Jeff keeps his crypto safe, gets the cash he needs, and stays right where he belongs – HODLing strong and ready for whatever comes next.
📚 Read More: Safest Ways to Store Your Crypto for the Long-Term
Figure VS Traditional Personal Loans
Traditional loans are the “old-school” kind of way to borrow cash via established financial institutions like banks, credit unions, or licensed lenders. These systems revolve around one main principle: creditworthiness. That means before you see a dime, the lender digs deep into your income, employment status, and debt history.
Getting approved usually involves a long, paperwork-heavy process.[2] Think credit checks, income verification, and a waiting period while someone behind a desk decides whether you’re worth the risk.
Sure, this system is created to protect the lender and follow strict financial regulations. But let’s be honest, it’s not ideal when you need funds fast, especially in the crypto space where things move at lightning speed and flexibility matters.
Now, let’s bring Figure crypto loans into the picture.
If Jeff’s story earlier didn’t quite paint the complete picture of what it can offer compared to their conventional counterparts, let’s break it down side by side. That way, you can see where the advantages stack up and why it’s worth considering a more modern, crypto-powered alternative.
Figure Crypto-Backed Loan | Traditional Personal Loan | |
|---|---|---|
Collateral | Bitcoin or Ethereum | None |
Interest rates | Competitive and often lower | Typically higher |
Origination Fees | Minimal to none | Usually 1%–5% |
Prepayment Fees | None | Potentially applied |
Approval Time | Same-day approval and funding | Can take several days or even weeks |
Accessibility | Available 24/7 globally | Potentially limited by location and banking relationships |
Impact on Credit Score | No impact | Directly affects your credit score |
Table: Figure crypto-backed loans VS traditional personal loans
As you can see, Figure gives you real-world liquidity without forcing you to exit your positions or deal with traditional gatekeepers. Whether you’re covering unexpected expenses or jumping on a time-sensitive market opportunity, it’s a faster and simpler way to stay liquid.
Why Figure Stands Out
You’ve seen how Figure crypto loans bring several advantages over traditional borrowing, including faster access, greater flexibility, and the ability to keep holding onto your digital assets while still getting the liquidity you need.
In this context, borrowing means locking up your crypto as collateral in exchange for cash, while lending means providing your crypto to others in return for interest.
But what really makes it stand out in the crypto space? Well, after digging into some user reviews of Figure crypto-backed loans and checking it out for myself, here’s what shines:
- Approval Based on Crypto: Figure doesn’t obsess over your credit score. Your loan approval is based on your crypto collateral. While there is a soft credit check involved, it won’t affect your score or cause unnecessary delays.
- Flexible Repayment Terms: You can choose between making monthly interest-only payments or deferring interest until maturity.2 That level of flexibility is something users mention positively in user Figure crypto-backed loan reviews, especially when life gets unpredictable.
- Full Collateral Control: Your crypto stays yours, even while it’s being used as collateral. It’s held by a qualified custodian, not lent out or used elsewhere, and won’t be rehypothecated. You keep beneficial ownership the entire time, unless you default.
In a sea of crypto lending & borrowing platforms, Figure manages to strike a rare balance. It's fast, transparent, and designed for long-term holders. Whether you’re borrowing for a quick expense or just unlocking some liquidity, it’s one of the most user-aligned options I’ve come across.
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How to Get a Figure Crypto-Backed Loan
Now that you’ve got a solid understanding of what Figure crypto loans are, how they compare to traditional borrowing, and why they stand out in the crypto space, it’s time to put that knowledge into action.
Let’s try applying for a loan and setting up your account. You can do this by visiting the official website.
Click [Continue] to proceed.
As you adjust these values, Figure will automatically calculate:
- Your interest rate;
- Your loan-to-value (LTV) ratio;
- Estimated monthly payment;
- And how much crypto you need to post as collateral.
Once everything looks good, click [Continue] to move on.
.jpg "What are Figure Crypto-Backed Loans: register for an account.")
You may also be asked to upload a valid government-issued ID and take a selfie to verify your identity.
You’ll need to provide the following:
- Full legal name
- Date of birth
- Country of citizenship
- Passport number or GIN
- Source of income
- Current address
- Phone number
At the bottom, check a few agreement boxes to confirm your consent. Once everything is filled out, click [I agree] to continue.
Once everything looks good, go ahead and sign the loan agreement to finalize the process.
That's it! If everything checks out, your loan will be approved. At that time, you’ll need to deposit your collateral. Once receipt of collateral is confirmed, the funds will be on their way.
If you live in the United States, your loan will be delivered via direct deposit. You can either connect your bank account through Plaid for faster setup or manually enter your ACH details. Just keep in mind that ACH transfers can take up to 7 days, while wire transfers are usually processed within 2 business days.
For those outside the US, the loan will be sent in USDC to the wallet address you provide once your loan is finalized.
📚 Read More: How to Transfer USDC to a Bank Account
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Fees, Rates, and Terms
As mentioned earlier, Figure crypto-backed loan fees, rates, and terms are quite competitive, especially when you consider the platform’s speed, simplicity, and flexibility. But let’s break everything down clearly so you know what to expect.
Fee Details
Figure crypto-backed loan fees are transparent, a breath of fresh air if you’re tired of hidden charges eating into your loan. Here are the key fees to keep in mind:
Type | Details |
|---|---|
Origination Fee | 0.25%; varies or waived depending on your location |
Prepayment Penalty Fee | None |
Liquidation Fee | Up to 2% of the amount liquidated, may vary by location |
Interest Deferral Fee2 | 1% of the interest owed; varies by location and loan amount |
Table: Figure crypto-backed loan fee structure
The origination fee depends on both the amount you borrow and your location. It's removed from the initial disbursement (e.g., you borrow $1000, the origination fee is $2.50, you receive $997.50). For most US states, the standard fee is 0.25% of the amount you’re borrowing.
Figure doesn’t charge a prepayment penalty, which is a major plus. Whether you want to pay off your loan early in full or just make extra payments along the way, you can do so without facing additional charges.
That said, you should be aware of a 2% liquidation fee, which may be triggered if Figure needs to sell part of your collateral to cover missed payments or a drop in collateral market value. It’s a safeguard for the lender and is important to keep in mind.
There may be a renewal fee if you choose to extend your loan after the initial 3-month term. This fee isn’t always applied, and the details may vary depending on your profile or location.
If you live in the US and opt to defer your interest payments rather than pay them monthly, Figure gives you that flexibility. However, a 1% deferral fee based on the total interest owed will be added to your loan at the end of the term.2
Not everyone will incur this fee, though. Depending on your location within the US, you may not have to pay it at all, or it might only apply if your loan exceeds a certain amount. Here’s the breakdown:
State | 1% Interest Deferral Fee Condition |
|---|---|
FL, IN, LA, MO, NM, ND, OR, PA, RI | No fee (for any loan amount) |
CA | Loan exceeds $10,000 |
ME | Loan exceeds $69,500 |
MN | Loan exceeds $50,000 |
NC | Loan exceeds $300,000 |
SC | Loan exceeds $115,000 |
WV | Loan exceeds $45,000 |
Table: Interest deferral fee by state
So if you’re in one of the exempt states or your loan amount stays under the threshold, you can defer interest without paying any extra fees.2 Just make sure to double-check the policy for your location before opting in, so you know what to expect.
Interest Rates
Figure crypto-backed loan rates aren’t just competitive, they’re also pretty flexible. The rate you get mainly depends on your initial LTV. Basically, rates are higher for loans with higher LTV ratios.
As of writing, interest rates range from 12.5% to 15% (or 12.5%–16.73% APR).3 For example, if you borrow $5,000 with an LTV below 55% and a 1.5% origination fee, your APR would be around 14.19%. That would give you a monthly interest-only payment of about $53.88 across the standard 3-month term.
Interest rates vary and are set based on your application date. BTC/ETH pricing is based on real-time values when you choose the option, and loan amounts may change with market conditions.
Here’s a quick look at how rates scale:
Initial LTV | Interest Rate3 |
|---|---|
0% – 55% | 12.5% |
55% – 65% | 13.75% |
65% – 75% (max) | 15.0% |
Table: Interest rate based on initial LTV
By the way, your LTV isn’t fixed. It moves with the market value of your crypto collateral. So even if you lock in a great rate at the start, it’s a good idea to check your dashboard regularly and keep tabs on how your collateral is performing.
To help with that, Figure provides real-time updates and sends alerts if your LTV climbs above 65% or gets close to your margin call threshold. If that happens, don't panic! You can either add more collateral or pay down your loan balance to stay in the clear and avoid any risk of liquidation.
Figure will even give you a unique deposit address so you can top up your collateral directly whenever needed.
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Loan Terms
Every Figure crypto-backed loan runs on a fixed 3-month term. During this period, you have two repayment options:
1
Make monthly interest-only payments;
2
Defer the interest and pay it at the end of the term.2
Regardless of which option you choose, you’ll need to repay the full principal and any deferred interest when the 3 months are up.
Once your loan is fully repaid, Figure will return any unused collateral directly to you.
Also, remember, there are no prepayment penalties. That means if you want to pay off your loan early, you can do so without any extra fees.
And if you need more time, you have the option to roll into a new loan once the term ends, as long as your LTV stays within the acceptable range and you still qualify. Just keep in mind that a renewal fee might apply.
📚 Read More: How to Borrow Against Bitcoin Safely
Loan Availability & Eligibility
Figure crypto loan availability depends on your location. The platform supports users in both the US and internationally, but not all regions are eligible due to regulatory restrictions.
As of writing, the service is offered by Figure Lending LLC in most US states, with the following exceptions: District of Columbia, Idaho, Illinois, Kentucky, Maryland, Mississippi, South Dakota, Texas, Vermont, and Virginia.
For users outside the US and those in New York, crypto loans are offered by Figure Markets Credit LLC.
However, the company doesn't provide services in the following countries or regions: Crimea, Donetsk, Luhansk, Afghanistan, Albania, Belarus, Central African Republic, the Democratic Republic Congo, Cuba, Ethiopia, Haiti, Islamic Republic of Iran, Iraq, Lebanon, Libya, Mali, Myanmar (Burma), Nicaragua, Nigeria, North Korea, Pakistan, State of Palestine, Russia, Somalia, South Sudan, Sudan, Syria, Ukraine, Venezuela, Yemen, and Zimbabwe.
If you're in an eligible region, here’s what you’ll need to apply:
- Verified Figure Markets account
- Supported collateral (BTC or ETH)
- A loan request of at least $5,000 (subject to jurisdiction)1
Once you have those ready, you should be good to go, as Figure will walk you through the rest directly within the application process.
Risks and Considerations
Knowing how convenient it is, you’re probably on your way to taking out a loan from Figure already. But wait! Before you do, it’s important to understand the risks that come with it. That way, you can make an informed decision and not be caught off guard when things don’t go as expected.
- Market Volatility Risk: If the value of BTC or ETH drops significantly, you could trigger a margin call that requires you to top up your collateral or repay part of your loan. And if you don’t act within 24 hours, your crypto can be sold to cover what you owe.
- Regulatory Risk: The crypto landscape is changing fast, and regulations often struggle to keep pace. Depending on where you live, a sudden legal shift could impact your loan eligibility or even your rights under existing agreements.
- Custody and Security Risk: Figure Markets has a strong track record, with solid security protocols and a no-rehypothecation policy in place. Still, no system is bulletproof. Cyberattacks, internal failures, or custody chain breakdowns, however unlikely, could put your collateral at risk.
- Liquidity Risk: Even though Bitcoin and Ethereum are highly liquid assets, market conditions can flip fast. In times of extreme stress, platform liquidity might tighten, which could lead to automatic liquidation of your assets.
- Counterparty Risk: If something ever happened to the platform, like insolvency, mismanagement, or fund mishandling, you could end up locked out of your own collateral. It hasn’t been a problem with Figure so far, but it’s something to keep in mind.
Figure crypto loans make it easy to tap into liquidity without selling your bags, and yeah, that’s definitely one of the big wins that DeFi tech brings. But like with any financial tool, it’s important to know what you’re getting into.
If you’re planning to use the service, do it with your eyes wide open. Take the time to read the terms carefully, understand the risks, and make sure you’re ready to act if the market shifts or your LTV creeps too high. Responsible borrowing goes a long way when your assets are on the line.
📚 Read More: Cryptocurrency Security Guide
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Conclusions
With Figure crypto loans, there’s no need to walk into a bank, wait in line, fill out mountains of paperwork, or sit around hoping for someone’s approval. The entire process is online, fast, and designed to get you cash without the hassle. With competitive rates and broad availability, it’s a solid choice if you need liquidity but still want to keep HODLing your crypto.
That said, convenience doesn’t cancel out caution. Figure does make things seamless, but it’s still on you to use the service responsibly. Always review the terms, keep a close eye on your LTV, and only borrow what you’re truly comfortable managing.
If that sounds good, why not give Figure crypto-backed loans a try and see how easy and efficient it can be for yourself?
Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections.
Figure.com | Licenses | ©2025 Figure Lending LLC dba Figure | 650 S. Tryon Street, 8th Floor, Charlotte, NC 28202 | (888) 819-6388. NMLS # 1717824 | For licensing information, go to www.nmlsconsumeraccess.org
Equal Housing Opportunity
Crypto loans are offered to U.S. borrowers by Figure Lending LLC. This product is not available to U.S. residents of DC, ID, IL, KY, MD, MS, SD, TX, VT, or VA.
Crypto loans are offered through Figure Markets Credit LLC to residents of the state of New York and to international customers except in the following jurisdictions: Crimea (Ukraine), Donetsk (Ukraine), Luhansk (Ukraine), Afghanistan, Albania, Belarus, Central African Republic, Congo (the Democratic Republic), Cuba, Ethiopia, Haiti, Iran (Islamic Republic of), Iraq, Lebanon, Libya, Mali, Myanmar (Burma), Nicaragua, Nigeria, North Korea (Democratic People's Republic of), Pakistan, Palestine (State of), Russia, Somalia, South Sudan, Sudan, Syria, Ukraine, Venezuela, Yemen, or Zimbabwe.
Figure Markets Credit LLC. 650 S. Tryon Street, 8th Floor, Charlotte, NC 28202. (888) 926-6259. NMLS ID 2559612. For licensing information go to www.nmlsconsumeraccess.org
Equal Housing Opportunity. Figure Lending is not affiliated with Figure Markets Holdings, Inc., Figure Technologies, LLC or any of its subsidiaries.
1 Crypto Loans start at a minimum of $5,000, subject to state and jurisdiction-specific legal limitations. Your loan amount will ultimately depend on the amount of collateral in your account and your eligibility will be determined by your state or jurisdiction of residence, credit profile, and other personal information available at the time of your application.
2 The fee to defer interest payments is 1% of the interest owed. For borrowers residing in FL, IN, LA, MO, NM, ND, OR, PA, and RI there is no fee. Deferral fee depends on loan amount for customers residing in the following states: CA - no fee if your loan amount is <= $10,000, 1% fee if >$10,000; ME - no fee if your loan amount is <= $69,500, 1% fee if >$69,500; MN - no fee if your loan amount is <= $50,000, 1% fee if >$50,000; NC - no fee if your loan amount is <= $300,000, 1% fee if >$300,000; SC - no fee if your loan amount is <= $115,000, 1% fee if >$115,000; WV - no fee if your loan amount is <= $45,000; 1% fee if >$45,000
3 The annual percentage rate (APR) of Figure's Crypto-Backed loan ranges from 12.5 - 15% (12.5-16.73% APR) as of 7/19/2024. The advertised Annual Percentage Rate (APR) of 14.19% is based on a $5,000 loan amount, an initial LTV of <55%, and contemplates the payment of a 1.5% origination fee, which would yield a monthly payment of $53.88. Rates will be higher for applications secured by assets with a higher LTV ratio. The Figure Crypto-Backed Loan has a 3-month interest-only repayment term and allows for a maximum initial LTV ratio of 75%. Interest rates change frequently so your exact interest rate will depend on the date you apply. The price quoted for BTC and/or ETH is based upon real-time price of the underlying currency at the time you select the option. Loan amounts are subject to change due to market conditions.
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. Menard F.: ‘Cryptocurrency: Collateral for Secured Transactions?’;
2. Jerab D. A.: ‘Assessing Creditworthiness in the Modern Financial Landscape: A Comprehensive Analysis'.
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