{"id":397,"date":"2025-11-20T16:45:57","date_gmt":"2025-11-20T07:45:57","guid":{"rendered":"https:\/\/cryptohome.jp\/?post_type=column&p=397"},"modified":"2026-01-23T14:50:20","modified_gmt":"2026-01-23T05:50:20","slug":"crypto-and-japanese-real-estate","status":"publish","type":"column","link":"https:\/\/cryptohome.jp\/en\/column\/crypto-and-japanese-real-estate\/","title":{"rendered":"Mechanism for borrowing Japanese yen using crypto assets as collateral and its use for real estate purchases"},"content":{"rendered":"

When considering the purchase of real estate with crypto assets, many are faced with the choice of whether to sell or capitalize on crypto assets.<\/p>\n\n\n\n

In Japan, it is not common to purchase real estate directly with crypto assets.<\/p>\n\n\n\n

A realistic alternative used instead is to borrow Japanese yen using crypto assets as collateral and use the funds to purchase real estate.<\/p>\n\n\n\n

This article will organize this structure from a practical perspective.<\/p>\n\n\n\n

Basic Structure of Crypto Asset-Backed Loans<\/h2>\n\n\n\n

The general scheme is as follows<\/p>\n\n\n\n

    \n
  1. Pledging crypto assets held as collateral<\/li>\n\n\n\n
  2. Borrow Japanese yen based on collateral valuation<\/li>\n\n\n\n
  3. Purchase real estate with borrowed Japanese yen<\/li>\n\n\n\n
  4. Collateral is returned upon completion of repayment.<\/li>\n<\/ol>\n\n\n\n

    The important point is that crypto assets are used as \"collateral\" rather than as a \"means of payment\".<\/p>\n\n\n\n

    Why \"Borrow without Selling\"?<\/h2>\n\n\n\n

    While the method of selling crypto assets outright to fund real estate is simple, it has the following disadvantages<\/p>\n\n\n\n

      \n
    • Likely to be taxable at the time of sale.<\/li>\n\n\n\n
    • Lost opportunity for future price increases<\/li>\n\n\n\n
    • Portfolio diversification breaks down.<\/li>\n<\/ul>\n\n\n\n

      On the other hand, if you pledge as collateral and borrow Japanese yen,<\/p>\n\n\n\n

        \n
      • In principle, no tax is levied at the time the collateral is pledged.<\/li>\n\n\n\n
      • Can continue to hold crypto assets<\/li>\n\n\n\n
      • Diversification into real assets in the form of real estate is possible.<\/li>\n<\/ul>\n\n\n\n

        For this reason, more and more people are choosing to rent instead of sell.<\/p>\n\n\n\n

        Collateral valuation and price volatility risk<\/h2>\n\n\n\n

        In crypto asset-backed lending, there are risks that must be understood.<\/p>\n\n\n\n

          \n
        • Collateral valuation is done on a market value basis.<\/li>\n\n\n\n
        • Additional collateral (margin call) may be required when prices fall<\/li>\n\n\n\n
        • In some cases, forced liquidation occurs if the amount falls below a certain level.<\/li>\n<\/ul>\n\n\n\n

          The following points should be carefully considered, especially if the funds are to be used to purchase real estate<\/p>\n\n\n\n

            \n
          • Is the property intended to be held for a long time?<\/li>\n\n\n\n
          • Can you afford the repayment plan?<\/li>\n\n\n\n
          • Is the design able to withstand fluctuations in crypto asset prices?<\/li>\n<\/ul>\n\n\n\n

            When to use it for real estate purchases<\/h2>\n\n\n\n

            The following points must be confirmed when using funds raised by crypto asset security to purchase real estate<\/p>\n\n\n\n

              \n
            • Reliability of financial institutions and loan providers<\/li>\n\n\n\n
            • Clarity of collateral and liquidation conditions<\/li>\n\n\n\n
            • Consistency with Japanese real estate transaction practices<\/li>\n\n\n\n
            • Can it be organized for tax and accounting purposes?<\/li>\n<\/ul>\n\n\n\n

              The connection with the real estate side of the practice is very important to avoid a situation where \"funds can be borrowed, but the entire transaction is not consummated.\"<\/p>\n\n\n\n

              summary<\/h2>\n\n\n\n

              Borrowing Japanese yen against crypto assets to purchase real estate is one of the realistic and legal options available in Japan.<\/p>\n\n\n\n

              However,<\/p>\n\n\n\n

                \n
              • Price fluctuation risk<\/li>\n\n\n\n
              • liquidation conditions<\/li>\n\n\n\n
              • Organize tax and legal affairs<\/li>\n<\/ul>\n\n\n\n

                It is dangerous to proceed without understanding the<\/p>\n\n\n\n

                At CryptoHome, we emphasize the importance of \"choosing the right one\" based on a proper understanding of these mechanisms and providing services in cooperation with reliable vendors.<\/p>\n\n\n\n

                Next time,
                Is it illegal to conduct real estate transactions utilizing crypto assets?\"<\/strong>
                Japanese legal system and regulations will be organized and explained.<\/p>","protected":false},"excerpt":{"rendered":"

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