August 6, 2025
5 min read
Theia Patin
Since April 2025, France allows loans using crypto as collateral via Lombard credit, enabling borrowing without selling digital assets.
Borrow Without Selling Your Cryptos: What the New French Regulation Changes
A law passed quietly in France now authorizes the use of crypto-assets as collateral for loans through Lombard credit, marking a symbolic step for integrating cryptocurrencies into traditional finance.Key Points
- Cryptos can now be used as collateral for loans in France.
- Only select authorized banks offer crypto Lombard credit.
- The legal framework exists but access remains limited and highly regulated. Since April 30, 2025, individuals and businesses in France can use their crypto-assets as collateral to obtain a loan in euros without selling their cryptos, provided the assets are deposited with an authorized CASP (Crypto Asset Service Provider) bank. Previously reserved for securities, Lombard credit now extends to digital assets. This enables investors to leverage their digital wealth to finance projects such as real estate purchases or professional ventures while retaining ownership of their crypto holdings.
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A Symbolic but Cautious Advance
This regulatory change aligns with a cautious European framework. Banks must fully cover risks linked to crypto-assets by immobilizing an equivalent amount in own funds, which currently restricts the availability and scale of such loans. Ambroise Helaine, France Director of the crypto exchange Bybit EU, states:“This is not yet a usage revolution, but it is a clear turning point symbolically. The existence of a legal framework to use cryptos as leverage in traditional finance is a major advance. It sends a strong message: digital assets are no longer seen only as speculative but also as carriers of patrimonial value.”
Strict Regulation and Limited Access
Despite the legal framework, practical implementation of Lombard credit backed by crypto-assets faces challenges. Only a few authorized CASP banks currently offer this product and proceed cautiously. Paul Bureau, Digital Asset Product Offer Director at Delubac & Cie, explains:“Not all crypto-assets qualify for Lombard loans. At Delubac & Cie, we accept only very liquid and well-capitalized assets such as BTC and USDC. Compliance is key: we require full traceability of fund origins. Eligibility depends on borrower profile and portfolio quality, with safety margins via loan-to-value (LTV) ratios adjusted for volatility.”Custody is another critical factor. Crypto-assets must be deposited on secure, controlled platforms or in partnership with banks, requiring robust custody solutions. He adds:
“Managing a crypto Lombard credit demands technical infrastructure for real-time asset valuation and instant margin calls during rapid price drops. This 24/7 monitoring is complex and requires strong systems. Additionally, French banks must immobilize one euro of own funds per euro lent, limiting deployment capacity. However, custody is not a barrier; we specialize in secure crypto custody in France.”
Outlook for Adoption
Currently, crypto Lombard credit serves a niche clientele. However, the legal framework opens new possibilities, especially in wealth management and project financing without divestment. This mechanism could evolve into a financial optimization tool for crypto holders, particularly if European regulations ease the prudential treatment of digital guarantees. Banks that adapt quickly may attract clients bridging traditional finance and Web3, a growing investor profile in France.Source: Originally published at Cointribune on Wed, 06 Aug 2025.