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Bridgecoin Capital Launches Crypto Loan Product Leveraging Capital Gains

Michael Abadha Blockchain market writer
    Summary:
  • Bridgecoin does not tokenise crypto asset gains, but packages them into real estate loan products complianciant with capital gains tax laws.

Today, Bridgecoin Capital has announced the launch of its new financing platform, the first of its kind to allow users to invest their cryptocurrency in the real estate industry. With the launch, the company has opened the door for cryptocurrency holders with unrealized capital gains to invest in commercial real estate debt investments, which offer all the tax advantages of debt investing.

Non-tokenised tax-optimised crypto lending

The Bridgecoin team has been actively working towards the inevitable integration of blockchain technology into the commercial real estate sector since 2018. The Bridgecoin team says that its platform is based on a regulation-centric model, with users benefiting not only from the platform’s robustness and stability, but also from its tax and interest features.

Bridgecoin Capital has devised a fully regulated method whereby a customer may collateralize their crypto assets and turn them into a cash loan while avoiding the transfer capital gains tax, and then invest that cash into real estate ventures that generate interest income.

Bridgecoin describes its groundbreaking strategy as the first tax-efficient way to preserve wealth in the blockchain industry, having been developed by a team of real estate and crypto experts.  The efficiency is achieved through the use of tax deferral and portfolio diversification via real estate on income from cryptocurrency trading. By launching in a way that prioritises both transparency and compliance, Bridgecoin assures its clients that their cryptocurrency gains are used for anything other than paying taxes.

According to Bridgecoin, their strategy does not include tokenizing physical property but rather borrowing our clients’ cryptocurrency at a fixed interest rate. All customers go through Know Your Customer (KYC) procedures, the lending and lockup structure is simple, and the return is guaranteed both in terms of the USD refunded at the end of the lockup period and the APY distributed throughout the process thanks to the collateralized loan.