Digital Collateral Loans at CUTX

With Digital Collateral Loans at CUTX, powered by BankSocial®, you can borrow against eligible cryptocurrency holdings without having to sell them.1

Keep Your Crypto. Unlock Its Value.

 

Introducing Digital Collateral Loans at CUTX.

You've invested in  your digital assets . Now, they could help you take the next step toward your financial goals.

Whether you're planning a major purchase, tackling home improvements, or looking for extra financial flexibility, a Digital Collateral Loan gives you another way to access funds without selling your cryptocurrency.

 

 

Digital Collateral Loan Details

Borrow against eligible cryptocurrency held in your BankSocial wallet.


Bitcoin BTC

Ethereum ETH

XRP XRP

Chainlink LINK
 
$1,000 Minimum Loan Amount
$2M Maximum Loan Amount
50% Maximum Loan-to-Value (LTV)
24 Months Fixed Loan Term

Loan amounts range from $1,000 to $2,000,000, subject to approval and eligible collateral value. Maximum loan-to-value is 50% at the time of application. All loans have a fixed 24-month term. Eligible cryptocurrencies and program requirements are subject to change. Cryptocurrency values may fluctuate, and additional collateral or repayment may be required under the loan agreement.

 

Why the Credit Union of Texas?

 
Trusted Lender: With nearly 100 years of experience, CUTX is a member-focused credit union you can trust to put your financial well-being first.
No Credit Score Needed:2 Qualify based on the value of your eligible cryptocurrency holdings, not your traditional credit score.
No Monthly Payments:3 Enjoy greater flexibility with no monthly payments required. Principal and accrued interest are due at loan maturity.
Competitive Rates: Enjoy competitive loan rates as low as 10%.4
Fast Access to Funds: Once you apply and get approved, you can access your funds that same day.5
Easy Application: Apply conveniently through the "Investments & Digital Assets" widget in your CUTX Online Banking account.
 
 
 

How Digital Collateral Lending Works

Step 1: Choose Your Digital Assets

Select the eligible cryptocurrency you'd like to use as collateral for your loan.

Step 2: Explore Your Loan Options

Enter the amount you'd like to borrow and review available loan terms based on your eligible digital assets.

Step 3: Review/Accept Your Offer

Review your loan details, including the interest rate, collateral requirements, and repayment terms, before accepting.

Step 4: Access Approved Funds

When all requirements are met, access your loan funds without having to sell your pledged cryptocurrency.

 









A New Way to Borrow. A Credit Union You Trust.

At CUTX, we believe financial services should keep evolving to meet your needs.

That's why we've partnered with BankSocial to bring you Digital Asset-Backed Lending, combining innovative digital asset technology with the member-focused service you expect from CUTX. It's another way we're helping you experience more from your credit union.

Why Borrow Against Your Crypto?

 

  • Keep Your Digital Assets: Access funds without selling your eligible cryptocurrency. That means you can maintain exposure to potential future market growth,6 even while using your assets as collateral.

  • Access Cash When You Need It: Turn eligible digital assets into borrowing power. Use the funds for everyday needs, unexpected expenses, or life's bigger opportunities.

  • Potential Tax Advantages:7 Selling cryptocurrency at a gain can create a taxable event. Borrowing against your assets may help you access funds without triggering the capital gains taxes associated with selling them. Consult your tax advisor about your individual situation.

  • Convenient Digital Experience: Explore your borrowing options through a digital lending experience powered by BankSocial, bringing innovative lending technology together with the credit union you know and trust.

Ready to Unlock More Possibilities?

Your digital assets have value. Now, discover how they could help you reach your next financial goal.

Explore Digital Collateral Lending with CUTX today.

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Banking Made Easier

Download the CUTXMOBILE app8 to manage your finances at your convenience.  Breeze through payments, transfers, and check deposits with just a few taps. Quickly sign-in using a 4-digit passcode. Apply for a credit card, a personal loan, or membership, or find your closest ATM or branch.

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Digital Collateral Loans FAQs

A Digital Collateral Loan allows you to borrow money using eligible cryptocurrency as collateral. Instead of selling your digital assets to access cash, you pledge them to secure a loan.

No. With a Digital Collateral loan, you can borrow against eligible cryptocurrency without selling it. However, your pledged assets serve as collateral and may be subject to liquidation if loan requirements aren't met.

Eligible cryptocurrencies are determined by the Digital Collateral lending program. You can review supported assets and applicable requirements when exploring your loan options.

Because you're not selling your pledged cryptocurrency, you can maintain exposure to potential price appreciation. However, cryptocurrency values can also decline, which may affect your loan and collateral requirements.

Borrowing against cryptocurrency generally does not involve selling the asset, which may avoid a capital gains event associated with a sale. However, individual tax circumstances vary, and you should consult a qualified tax professional.

Cryptocurrency prices can fluctuate significantly. If the value of your pledged assets declines, you may be required to provide additional collateral, repay part of your loan, or face liquidation of collateral, depending on the loan terms.

Select the button below to explore your DABL borrowing options, review eligibility requirements, and learn more about available loan terms.









 
 
 

Helpful Documents




















  1. Digital Collateral Loans require eligible cryptocurrency to be pledged as collateral. Pledged assets may be subject to restrictions and liquidation under the terms of the loan agreement. Cryptocurrency values can fluctuate significantly, and borrowers may lose some or all of their pledged assets.
  2. Loan eligibility is based primarily on the value of eligible cryptocurrency pledged as collateral rather than a traditional credit score. All loans are subject to eligibility requirements, approval, and applicable loan terms. 
  3. No scheduled monthly payments are required during the loan term. Interest continues to accrue, and the outstanding principal and accrued interest are due at loan maturity. Additional repayment or collateral requirements may apply if the value of pledged cryptocurrency declines, as specified in the loan agreement.
  4. Advertised rates are subject to eligibility, approval, collateral requirements, and applicable loan terms. Not all borrowers will qualify for the lowest advertised rate. Rates are subject to change. Additional fees or charges may apply.
  5. Same-day funding is subject to loan approval, identity verification, completion of collateral requirements, and processing times. Actual funding times may vary. Same-day funding is not guaranteed.
  6. Borrowers may retain exposure to potential cryptocurrency price appreciation while their assets are pledged as collateral. However, digital asset values can decline significantly, and pledged assets may be liquidated if collateral requirements are not maintained. Future appreciation is not guaranteed.
  7. Borrowing against cryptocurrency generally does not constitute a sale of the pledged assets. However, tax treatment varies based on individual circumstances, and liquidation of collateral may result in taxable events. CUTX does not provide tax or investment advice. Consult a qualified tax professional regarding your individual situation.
  8. Messaging and data rates may apply.

Digital Collateral Loans are subject to eligibility, approval, collateral requirements, and applicable loan terms. Cryptocurrency and other digital assets are not federally insured by the NCUA, are not guaranteed by Credit Union of Texas, and may lose value. Digital asset services are powered by BankSocial®, a third-party provider. Additional terms, conditions, fees, and restrictions may apply. Review all loan and collateral agreements before accepting a loan.