The feature lets users raise cash without selling holdings, but Uphold did not disclose loan-to-value ratios, rates, limits or country availability in its August 6 X post.
Uphold has introduced a crypto-backed borrowing feature that allows customers to take out cash loans using Bitcoin, Ethereum, XRP or USDC as collateral while keeping exposure to the underlying assets. The structure gives users liquidity without selling, which can matter for tax treatment because borrowing against crypto is generally not a taxable sale in most jurisdictions. The announcement, made in an August 6 post on X, left out key details borrowers typically need to assess risk, including the loan-to-value ratio, interest rate, minimum and maximum loan size, supported countries, and whether the rollout is live for all users or only in stages. Those omissions are significant because collateralized loans can trigger liquidation (forced sale of pledged assets) if prices fall past a threshold. The arrangement is also custodial (platform holds customer assets), meaning users are relying on Uphold to safeguard the collateral and honor the loan terms. The launch follows Uphold's Exa credit card, which uses XRP as collateral for a U.S. credit line, suggesting the company is expanding a broader lending offering around its accounts and card products.