Since April 30, 2025, France has made a historic breakthrough in the Monetary and Financial Code: it is now possible to pledge one’s cryptocurrencies to obtain a loan in euros. In other words, financing a project without selling a single satoshi is now a legal reality. Crypto Lombard credit officially lands in France, and hodlers are the first to smile.
France Legalizes Crypto Lombard Credit
The principle is simple: deposit your crypto assets as collateral with a bank or an authorized institution to receive funds in euros. The investor retains ownership of their cryptos while accessing liquidity, without triggering immediate taxation. For now, this operation remains fiscally neutral in France, a significant advantage in a tax environment often hostile to digital asset holders.
Transforming Cryptos into Liquidity Without Selling or Taxation
The model is not new: it draws inspiration from traditional Lombard credit, born in medieval Italy, and used for centuries by banks to grant loans on pledge. What changes is the nature of the collateral. Out with stocks or bonds, in with bitcoins and other tokens.
A Powerful Yet Risky Financial Lever
This type of credit allows you to mobilize the value of a crypto portfolio without liquidating it, nor giving up its potential appreciation. An example? An investor deposits 100,000 € in BTC to borrow 40,000 € in cash. In the event of a bull market, they benefit from the rise in their assets while financing their projects. The mechanism acts as a banking leverage… provided that the risk is managed well.
Because in case of market decline, a margin call may force the borrower to strengthen their collateral under penalty of liquidation. Hence the importance of choosing reliable platforms or banks, with strong regulations, like in Switzerland or Luxembourg. Some go further, offering proactive collateral management or insurance against abrupt liquidations.
A Legal Breach… and Tax Uncertainty
While French law now allows this practice, not everything is settled on the tax front. Crypto Lombard credit is a priori not a taxable event, but several tax experts urge caution. The issue of latent gains in the event of pledging remains unclear, and regulatory clarification is expected, especially at the European level.
The Union is indeed working on a framework inspired by the pledging of financial securities, with the aim of legally securing these innovative operations and providing lenders and borrowers with a stabilized environment.
