Ultra-wealthy investors who hold a large share of their fortunes in crypto are increasingly turning to decentralized finance (DeFi) to unlock liquidity, avoiding the need to sell their digital assets.

According to Jerome de Tychey, founder of Cometh, many high-net-worth clients such as family offices control tens or even hundreds of millions of dollars in bitcoin, ether and stablecoins, yet face difficulties borrowing from traditional banks. To solve this, firms like Cometh use DeFi protocols including Aave, Morpho and Uniswap to structure crypto-backed loans that resemble Lombard-style lending in traditional finance.

Instead of liquidating crypto to fund luxury spending — such as travel, property upgrades or large lifestyle expenses — investors can pledge their digital assets as collateral and borrow stablecoins or equivalent liquidity. This allows them to maintain long-term exposure, avoid triggering capital gains taxes and access cash quickly.

Speed is a key advantage. A bitcoin-backed loan on a DeFi platform can be executed in seconds, while a comparable Lombard loan at a private bank may take days due to credit reviews and documentation requirements. Many DeFi protocols are also permissionless, offering an additional layer of privacy for borrowers who value discretion.

However, the risks are higher. Crypto price volatility can lead to rapid collateral liquidations if asset values fall below required thresholds. As a result, these strategies typically require active monitoring and risk management.

Cometh positions itself as a bridge for traditional investors entering DeFi, helping clients navigate tools that can be technically complex. The firm recently secured a MiCA license in France, enabling it to expand its regulated operations within the European Union.

Beyond crypto, Cometh is also exploring ways to apply DeFi-style strategies to traditional financial assets such as stocks and bonds through tokenization frameworks linked to ISIN identifiers.