High-net-worth investors increasingly use digital assets to buy real estate
A surge in crypto-backed lending has enabled high-net-worth individuals to purchase property across global markets at a growing rate, according to new analysis from international mortgage broker Enness Global.
The firm’s data shows a sharp rise in both demand for loans secured against cryptocurrency and the number of lenders offering such products, as digital assets continue to outperform traditional investments.
Enness Global has observed a 214% rise in visits to its crypto-finance webpages over the past year, arranging more than 100 loans secured against cryptocurrency during the same period. The growing appetite for such finance has led to a 30% uptick in the number of lenders offering these products.
Crypto-backed property finance enables investors to borrow against their digital assets, such as Bitcoin and Ethereum, rather than selling them. This approach, the brokerage said, provides liquidity while allowing continued exposure to potential gains.
Enness Global collaborates with a range of lenders, including private banks and specialist finance firms, that accept major cryptocurrencies as collateral. Loan terms depend on factors such as jurisdiction, property type, and the borrower’s overall wealth, with interest rates typically between 3.5% and 8.9%.
These loans can be used to acquire both residential and investment properties in locations including London, Dubai, Mallorca, and Miami. Some lenders convert cryptocurrency to fiat currency before completion, while others retain the digital assets under agreed custody arrangements. Borrowers are, however, advised to consider risks such as price volatility, margin calls, and jurisdictional restrictions.
The popularity of crypto-backed lending has grown alongside the strong performance of digital assets relative to property values over the past year. Enness Global’s figures show the average UK house price increased by 2.3%, and London prices by 0.6%. In contrast, Bitcoin rose by 79% and Ethereum by 59% during the same period.
Consequently, the amount of Bitcoin required to purchase an average UK home has decreased by 43% in the past year, despite a modest rise in house prices. For London properties, the equivalent Bitcoin needed has dropped by 44%, with Ethereum showing a similar pattern.
“High-net-worth investors are increasingly using crypto wealth as a sophisticated tool to diversify their portfolios and access the global property market more freely,” said Islay Robinson, chief executive of Enness Global. “To do this, they borrow against their crypto holdings rather than liquidating them, allowing them to retain exposure to future market gains while deploying capital into prime real estate. This creates a bridge between two asset classes that have traditionally operated in separate worlds - digital wealth and tangible property ownership.
“We’re seeing growing acceptance from private banks and specialist lenders who understand that many crypto investors are financially astute, well-advised, and hold significant diversified wealth. With more lenders now entering the space and digital asset values continuing to grow long term, the infrastructure supporting crypto finance has matured considerably in the last 12 months.”
For mortgage brokers, the rise of crypto-backed property finance means a growing need to understand digital assets and related lending products. Brokers may encounter more clients seeking to leverage cryptocurrency for property purchases, requiring knowledge of lender requirements, risk factors, and compliance issues in the evolving market. Adapting to these trends can help brokers serve high-net-worth clients and expand their service offerings.
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