You Can Now Sell Your Collateral On Lantern

Sell Collateral is live on Lantern today, and it's one of the biggest updates we've shipped since launch.

We built Lantern so you could get dollars without selling your crypto. Now, when you do want to sell, you can do it without ever leaving your loan. Pick an amount, confirm, and the proceeds go straight toward what you owe.

Sell a slice to bring your balance down. Or sell it all, pay the loan off, and keep the rest as cash.

Sell Collateral is available today to every borrower with access to Lantern Trading.

Pay down your loan with the crypto you already have

Plans change after you borrow. Maybe the price ran up and you want to take some gains off the table, or you'd rather repay with the coin than wire in cash.

Before, that meant getting your collateral back, selling it somewhere else and sending the dollars back in. Now you pick an amount on your loan page, check the quote and confirm. Lantern sells at the market rate and applies the proceeds to your loan.

Or sell it all and keep the rest as cash

Paying off the whole loan? You can sell all of your collateral in one go. Lantern pays off the loan first and credits what's left to your Lantern Trading balance, ready to withdraw to your bank. No second transfer needed.

How traders might use it

Scenario #1: Keep the gain in XRP

Jay is an XRP trader who wants to grow his holdings. He takes out a $1,000 Lantern loan, buys about 666.67 XRP at $1.50 each, and adds that XRP to his loan collateral.

Later, XRP rises to $3.00. The XRP Jay bought is now worth $2,000, a 100% gain.

Jay uses Sell Collateral to sell half of those coins (about 333.33 XRP) for $1,000 and puts the proceeds toward his loan principal.

His loan is repaid, and he keeps about 333.33 extra XRP, worth $1,000. He's held on to the gain in XRP.

Scenario #2: Pull your LTV back before a margin call

Jay borrows $10,000 against 10,000 XRP worth $2.50 each. His collateral is worth $25,000, so his loan-to-value (LTV) is 40%.

Then XRP drops to $1.80. His collateral is now worth $18,000, and his LTV climbs to 55.6%, edging toward a margin call.

Jay doesn't want to wire in cash or add more XRP. So he uses Sell Collateral to sell 2,000 XRP for $3,600 and puts the proceeds toward his principal.

His loan drops to $6,400, backed by 8,000 XRP worth $14,400. His LTV is back down to 44.4%, and he still holds most of his XRP.

Scenario #3: Repay at maturity without adding cash

Jay borrows $5,000 against 0.25 BTC worth $60,000 each. His collateral is worth $15,000.

A year later, the loan term ends and BTC is at $80,000. Jay would rather not move $5,000 from his bank to settle the loan.

So he uses Sell Collateral to sell 0.0625 BTC for $5,000 and repays his principal.

His loan is closed, and he keeps 0.1875 BTC, worth $15,000.

These examples are for illustration only. Loan fees, interest, trading fees and taxes are excluded. XRP quantities are rounded. Price movements are hypothetical.

Get started

Log into Lantern, open a loan and click Sell Collateral. For a walkthrough of every screen, read our guide: How To Sell Your Collateral On Lantern

You can sell up to $250,000 per sale, and up to $500,000 per month for each asset. Planning a larger sale? Reach out to our support team and we'll adjust your limit.

Selling crypto may have tax consequences, so consider your own situation before you confirm. Questions? Call or text our team at (415) 365-0100.