How Ultra-Wealthy Investors Are Using DeFi Lending to Unlock Liquidity Without Selling Crypto

The global population of crypto millionaires has surged to 241,700 in 2025, representing a remarkable 40% increase year-over-year. With such explosive growth in crypto wealth, a new financial dynamic has emerged: how do these asset-rich individuals fund their lifestyles—vacations, property upgrades, and luxury experiences—while maintaining their digital asset holdings? The answer lies in DeFi lending platforms, which are reshaping how high-net-worth crypto investors access flexible credit without triggering taxable events or parting with their holdings.

For crypto-wealthy individuals, traditional banking institutions remain largely inaccessible. Most banks refuse to accept cryptocurrency as collateral, leaving investors in a difficult position: either liquidate their digital assets to fund lifestyle expenses or abandon access to credit entirely. However, DeFi lending has emerged as a compelling alternative, enabling sophisticated investors to leverage their crypto positions as collateral for loans denominated in stablecoins or fiat equivalents.

The Rising Demand for DeFi Lending Among Crypto-Rich Clients

Cometh, a France-based platform recently licensed under the European Markets in Crypto Assets (MiCA) regulation, exemplifies the institutional approach to DeFi lending for wealthy clients. According to the platform’s founder Jerome de Tychey, the firm specializes in helping family offices and ultra-high-net-worth individuals navigate complex decentralized finance strategies without requiring deep technical expertise.

The appeal is clear: family offices managing tens or hundreds of millions in crypto assets increasingly view DeFi lending as a practical financial tool. Rather than executing complicated transactions on anonymous platforms, these clients prefer intermediaries who can structure credit lines using Bitcoin, Ethereum, USDC, and other digital assets.

“For someone unfamiliar with DeFi protocols, the process can seem unnecessarily complex,” de Tychey explained. “Our role is to simplify this for family offices that hold substantial crypto but want straightforward credit access.”

The typical use case mirrors traditional Lombard lending structures: clients pledge assets as collateral and receive flexible, short-term credit lines to fund operations, investments, or lifestyle expenses—all while preserving the upside of their underlying holdings.

DeFi Lending vs. Traditional Finance: Speed and Flexibility

When comparing DeFi lending mechanisms to conventional bank Lombard loans, the operational differences become striking. A DeFi-based loan using Bitcoin as collateral can be processed in as little as 30 seconds on platforms like Aave or Morpho. By contrast, securing a traditional Lombard loan backed by stocks or bonds through a private bank typically requires 5-7 days and involves extensive credit checks, income verification, and tax documentation.

Furthermore, DeFi lending operates on a permissionless basis—meaning smart contracts execute transactions based on code rather than subjective human approval. This eliminates traditional hurdles like credit score requirements, making DeFi lending particularly attractive for individuals seeking discreet financing. The anonymity advantage appeals to many ultra-high-net-worth individuals who prefer minimal disclosure.

BTC is currently trading at $78.32K, while ETH stands at $2.42K, reflecting the substantial asset bases many crypto investors now hold.

However, DeFi lending carries distinct risks absent from traditional banking relationships. Crypto price volatility poses liquidation hazards: if a collateral asset’s price drops sharply, automated smart contracts may trigger immediate liquidation of the borrower’s position. Additionally, counterparty risks exist within decentralized protocols, and regulatory clarity remains evolving in many jurisdictions.

The Evolution: Applying DeFi Lending to Traditional Assets

Cometh’s newest initiative demonstrates how DeFi lending strategies are expanding beyond cryptocurrency alone. The platform is experimenting with ISIN-based tokenization—assigning International Securities Identification Numbers to traditional assets like stocks, bonds, and derivatives—to enable DeFi lending mechanisms for conventional securities.

“This represents a kind of reverse tokenization—a ‘tradfi-cation’ of DeFi,” de Tychey noted. “We’re developing private debt products through dedicated fund structures, allowing clients with securities portfolios to access the same speed and flexibility DeFi lending offers in the crypto realm.”

This convergence suggests that DeFi lending frameworks may eventually blur the boundary between traditional finance and decentralized systems, creating hybrid solutions for the ultra-wealthy regardless of asset type. As regulatory frameworks mature and platforms gain proper licensing, DeFi lending is poised to become a mainstream wealth management tool for institutional and ultra-high-net-worth clients worldwide.