Using crypto for a line of credit: 7 things to know

With Nexo, you can access liquidity without selling your assets.

High-conviction investing shouldn't mean choosing between your future potential and your present reality.

For long-term holders, building real wealth has traditionally come with a compromise: the only way to tap into the value you've accumulated was to sell it. That meant interrupting your compounding journey, triggering taxable events, and parting with the assets you believe in most.

The Nexo Credit Line provides an additional option for your crypto.

By putting your digital assets to work as collateral, you gain instant, flexible access to cash or stablecoins—on your terms. You keep full ownership, letting your portfolio work for you today while continuing to build for tomorrow.

Nexo, a new entrant to Australia's crypto market, allows you to open a line of credit using your crypto as collateral. So we're taking a look at some of the key considerations.

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1. Why do people use crypto for a line of credit?

Some of the most common reasons to use crypto to access a line of credit include:

Accessing liquidity without selling assets

Leverage your digital assets as collateral to unlock immediate capital without parting with your holdings, allowing you to maintain your full market position and long-term upside.

Cash flow flexibility for seasonal or variable income

Traditional loans rely on rigid monthly schedules that can strain individuals and business owners with irregular or seasonal cash flow. With no mandatory monthly repayment schedules, a Nexo Credit Line allows you to manage liquidity on terms that match your financial rhythm.

Preserving your long-term wealth strategy

Building a digital asset portfolio takes disciplined commitment, often accumulated over months or years. When real-world expenses or new opportunities arise, selling crypto can feel like breaking that momentum. Borrowing against your holdings provides the breathing room to manage today's financial needs without tearing up tomorrow's plans.

A reusable credit line, not a one-off loan

A line of credit also works differently to a traditional loan, where you generally can't redraw once it's settled. With the Nexo Credit Line, once you've repaid part of what you borrowed, you can borrow multiple times up to your credit limit, subject to terms and eligibility.

2. What can a line of credit via crypto be used for?

Nexo has a deliberately broad approach to lending purposes. Some of the reasons people borrow include:

• Fund a major purchase or lifestyle expenses
• Pursue new business opportunities
• Real estate deposits or down payments

If you're looking to borrow a line of credit through Nexo, you'll need to specify your intended purpose during the application process.

3. How much can be borrowed on a line of credit with Nexo?

The amount you can borrow in a line of credit from Nexo varies depending on a few factors:

• The type of credit you take out (Smart or Standard)
• The value of your current crypto holdings, to provide the loan-to-value ratio (LTV)
• Your credit history
• Your income

In terms of dollar figures:

• The Smart Credit Line lets you borrow from US$50 to US$2,000,000
• The Standard Credit Line lets you to borrow from US$1,000–US$2,000,000

These amounts can be paid out in AUD or in stablecoins, according to your preference. You can find out how much you're able to borrow by visiting the Nexo website.

4. How do I repay my Credit Line?

With a Nexo Credit Line, repayment works entirely on the borrower's own timeline.

Unlike traditional bank loans with rigid monthly repayment schedules, there are no mandatory monthly repayments and no fixed maturity dates. You have the flexibility to make partial repayments, settle the balance in full whenever you choose, or keep your credit line open for as long as you need, provided your collateral stays within the required Loan-to-Value (LTV) limits.

However, you will be required to pay interest on the amount you've borrowed and days that you've actually used the line of credit.

You will also want to think carefully about when you make repayments, as it can affect the amount of interest that you're charged. If you repay within 45 days of your last withdrawal, an early repayment fee applies.

As you repay, you can borrow again up to that limit, subject to terms and conditions. For some borrowers, this can provide more flexibility than a traditional loan, though it's always important to weigh up your financial requirements vs your ability to repay.

5. What interest is charged on Nexo's Credit Line?

The interest rates you are charged with Nexo vary depending on what type of loan you have taken out. Smart and Standard Credit Line are one regulated product offered as two loan types.

• Smart Credit Line: Assesses your eligibility based on the digital assets you pledge as collateral and includes pre-authorised automated collateral management to protect the health of your credit line.
• Standard Credit Line: Verifies your income, expenses, and repayment capacity alongside your collateral, and features a 30-day notice period if your loan-to-value ratio exceeds the default threshold.

Your borrowing rate depends on your Wealth Club Tier.

You can take a closer look at the interest charged at each tier of Wealth Club membership below. The second column is the dynamic rate, which applies only when your LTV is below 20%.

Smart Credit Line

Standard Credit Line

Additionally, until November 13 2026, Smart Credit Line borrowing is offered at 50% off the standard interest rate for a fixed promotional period, for new and existing clients of Nexo Australia. After the promotional period ends, your Wealth Club tier rate applies.

6. What if my crypto changes value?

If your crypto drops in value while you have an open line of credit with Nexo, the next steps will depend on what type of loan you have.

Standard Credit Line

• Your LTV passing 60% is considered a default on the loan.
• A default notice is sent and you will have 30 days to address the issue, either by adding more collateral or making relevant repayments.
• If this is not met, the relevant portion of your collateral risks being sold.

Smart Credit Line

• When you take out a Smart Credit Line, you authorise Nexo to manage your collateral on your behalf.
• If your LTV passes the maximum amount, some collateral is sold automatically to maintain the health of the loan.

However, if your crypto rises significantly in value, you may be eligible for an increased line of credit.

Crypto losing value is one of the significant risks associated with using it as collateral for a loan or line of credit. Make sure that you conduct the appropriate due diligence before taking out a loan or line of credit with crypto as collateral.

7. How is Nexo regulated in Australia?

Nexo Australia operates under Australia's domestic regulatory framework:

• Regulated by ASIC as a Credit Representative:
  Nexo Australia is regulated by ASIC as a Credit Representative, which brings its Credit Lines under the National Consumer Credit Protection Act and National Credit Code — the same consumer-credit rules that apply to personal lending across Australia, including a required suitability assessment before any loan is issued. You can check Nexo's Credit Representative and licence status on ASIC's register.
• Registered with AUSTRAC & member of AFCA:
  Nexo Australia is registered with AUSTRAC — the country's anti-money laundering watchdog — as a Virtual Asset Service Provider, under registration number DCE100843695-001. That's the same category of registration other Australian crypto exchanges hold, and it's why Nexo verifies client identity and runs ongoing due diligence. In addition, Nexo Australia is a member of the Australian Financial Complaints Authority (AFCA), giving clients free access to an independent dispute resolution service. Both registrations can be independently verified directly on the AFCA and AUSTRAC public registers.
• Built for the Australian market:
  Locally incorporated with an on-the-ground team, offering dedicated AUD accounts, fast transfers via PayID, and the choice between AUD or stablecoin loan payouts.

Learn more about a line of credit with Nexo

More information about Nexo

Any information or advice provided is general only and does not take into account your objectives, financial situation or needs. Consider whether a product is appropriate for you. Credit Line and Nexo Growth are available only to eligible clients and are subject to applicable terms, conditions and jurisdictional restrictions. Rates, fees, supported assets and other product features may vary over time and between products . Return Rates for Nexo Growth are set for each Supported Asset and term. Return is not guaranteed. Borrowing against digital assets involves substantial risk, and you may lose some or all of your digital assets if the value of your collateral falls or market conditions change. Nexo Growth involves transferring ownership of your digital assets to Nexo Australia in exchange for an unsecured contractual claim. If Nexo Australia cannot meet its obligations, you may not get them back. Nexo Growth is not a bank deposit and is not capital protected. The price, value and liquidity of digital assets are highly volatile and subject to market risk. You could lose some or all of the value of your digital assets. Before making any decision whether to use a product, you should read the applicable Terms of Service and, where relevant, the Credit Guide, Product Disclosure Statement, Financial Services Guide and Target Market Determination available on the Nexo Australia website. Nexo Australia Pty Ltd (ACN 667 513 073) is registered with AUSTRAC as a Virtual Asset Service Provider (Reg. No. DCE100843695-001). AUSTRAC registration is for AML/CTF purposes only and is not an endorsement. Credit products which are regulated by the National Credit Code, are provided by Nexo Individual Loans Pty Ltd (ACN 695 724 737), serviced by Avgi Pty Ltd (ACN 682 656 202) under Australian Credit Licence 567308 and managed by Nexo Australia Pty Ltd (ACN 667 513 073) under Credit Representative Number 580430. Credit products which are not regulated by the National Credit Code are provided by Nexo Loans Pty Ltd (ACN 695 724 442) and managed by Nexo Australia Pty Ltd. Credit criteria, T&Cs, and fees and charges apply to all credit products.