The new lending platform from Bridgecoin Capital is the first of its kind, allowing clients to invest their cryptocurrency in conventional real estate. This groundbreaking strategy is the first tax-efficient way to preserve wealth in the blockchain sector, and it was developed by a team of real estate and crypto experts. This is achieved via the use of tax deferral and portfolio diversification through real estate on income from cryptocurrency trading.
Members of the Bridgecoin team have extensive experience in both commercial real estate and the crypto sector. The group has been working on bringing blockchain technology to the commercial real estate industry since 2018.
The real estate sector is valued at over $3 trillion, far surpassing the cryptocurrency market of over $500 billion. There were significant capital gains tax consequences for the $163 billion that investors made during the previous crypto bull run. Those with profits in cryptocurrency, whether they be crypto whales, institutional investors, accredited investors, or average traders, lost billions in taxes. Bridgecoin Capital’s team has established a completely regulated procedure through which a client may collateralize their crypto assets into a cash loan while avoiding the transfer capital gains tax, and then invest the funds into interest-flowing real estate projects.
With the introduction of this novel model, Bridgecoin Capital is helping investors take advantage of the tax deferral offered by the 1031 exchange, which is widely employed in the real estate market. Moreover, users of the Bridgecoin platform have access to a growing portfolio of over $50M in US properties.
Joey Billet, co-founder and CEO of Bridgecoin, said of the launch: “We are proud and excited to introduce our platform to the crypto community. Our team has identified a key sore spot for successful investors regarding the capital gains tax. With our experience within both industries, we have found a way for investors to defer their crypto gains tax, while simultaneously diversifying their portfolio generating passive income. Our process does not tokenize real estate assets, but borrows our customers’ crypto while paying a flat rate as interest. Bridgecoin clients can sleep at night knowing their rate of return is locked into tangible real estate assets where their money is safe.” This is the power of our newly launched platform.”
Users of the Bridgecoin platform benefit from the tax and interest features as well as the robust and reliable platform, which is positioned as a regulation-focused approach. A collateralized loan ensures that the return is fixed in terms of the USD reimbursed at the conclusion of the lockup period and the APY provided throughout the process, all clients are subjected to Know Your Customer checks, and the lending and lockup structure is straightforward.
Bridgecoin has allowed cryptocurrency holders with unrealized capital gains to engage in commercial real estate and reap the tax advantages associated with debt investments. With the introduction of Bridgecoin, cryptocurrency earnings will be invested in a more productive manner than just paying taxes, all while maintaining full transparency and legal compliance.