Crypto Collateral

In a crypto-backed loan, crypto collateral is the digital asset the borrower pledges to secure the debt. It functions the same way a house secures a traditional mortgage: if the borrower defaults, the lender can sell the collateral to recover the loan balance.

Lenders typically accept only large, liquid assets (Bitcoin, Ethereum, sometimes stablecoins) and hold them with a qualified custodian for the life of the loan. The amount you can borrow against your crypto is determined by the loan-to-value ratio, which varies by lender and market conditions.

Why it matters for Milo customers

Milo accepts Bitcoin and Ethereum as crypto collateral for both mortgages and crypto-backed loans. Collateral is held in segregated custodial accounts at Coinbase and BitGo — never pooled, never rehypothecated.

Related terms

Crypto-Backed MortgageQualified CustodianLoan-to-Value Ratio (LTV)Rehypothecation
Crypto-Backed MortgageCrypto Mortgage

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