An increasing number of ultra-high-net-worth individuals, particularly those who have accrued significant wealth through cryptocurrency investments, are facing unique challenges when seeking short-term loans. A hypothetical investor, for instance, may own a luxury home in Switzerland and a beach house in Miami, boasting an impressive net worth of around $10 million. However, rather than liquidating assets for immediate cash, this investor seeks a line of credit to finance a ski vacation in St. Moritz, attend the Cannes Film Festival, and upgrade their yacht.
In traditional finance, the investor could approach their bank and potentially secure a short-term loan against real estate assets. However, if a substantial portion of their wealth is tied up in cryptocurrencies, options for obtaining financing become more complicated. This predicament is echoed in findings from a recent survey by Henley & Partners, which noted that the global population of crypto millionaires reached 241,700 in 2025—an increase of 40% compared to the previous year.
As traditional banks often remain hesitant to accept cryptocurrencies as collateral, many investors are left searching for alternatives. Sophisticated decentralized finance (DeFi) lending strategies are emerging as viable solutions. Jerome de Tychey, founder of Cometh—a DeFi facilitator recently licensed under the Markets in Crypto Assets (MiCA) regulation in France—spoke on this topic during his participation at the CfC St Moritz crypto conference.
For seasoned crypto investors, using digital assets to secure a loan is feasible; for example, they can collateralize ether (ETH) tokens on platforms like Aave to withdraw stablecoins. However, for investors unfamiliar with the intricacies of DeFi, this process can be daunting, according to de Tychey. He emphasized that his firm often assists family offices looking to leverage their crypto assets for credit lines.
On a practical level, high-net-worth clients frequently resort to collateral loans, also referred to as Lombard loans, allowing them to secure loans against various assets, including stocks and bonds. This approach offers the advantage of quick cash access without the tax implications of selling assets. Such clients frequently possess wealth in the tens or hundreds of millions of dollars and seek to maintain the value of their investments while managing their cash flow.
De Tychey pointed out that Cometh enhances traditional lending by integrating DeFi strategies involving assets like bitcoin (BTC) or cryptocurrencies such as USDC and ether on decentralized platforms. This combination offers several advantages over traditional loans, including expedited processing times. For instance, a loan backed by bitcoin can be executed in as little as 30 seconds on certain platforms, whereas a Lombard loan from a private bank could take up to seven days to process. Furthermore, DeFi loans typically do not require credit checks or tax returns, allowing for greater anonymity in transactions.
However, crypto-backed loans also carry risks. The fluctuating value of cryptocurrency can pose challenges, including the potential for collateral liquidation if asset prices drop sharply. Still, DeFi presents an appealing alternative for those looking to leverage their crypto holdings without engaging traditional financial institutions that may not consider these digital assets as valid collateral.
With the MiCA license in hand, Cometh is exploring avenues to apply DeFi strategies to more traditional financial instruments such as stocks and bonds, utilizing International Securities Identification Numbers (ISIN) for the process. De Tychey explained the potential for these approaches, stating that they signify a movement toward what he describes as the “tradfi-cation of DeFi.” This shift represents an effort to bridge the gap between decentralized finance and traditional financial assets, offering investors innovative ways to access credit while adapting to a rapidly evolving financial landscape.
