Bitcoin-Backed Loans in Hawaii
5 of the 7 Bitcoin-backed loan lenders we track serve Hawaii, with rates from 7.49% APR. Here is who lends in Hawaii, who doesn't, and what each offers.
Hawaii is unusual on both fronts: its alternative tax caps long-term capital gains at 7.25 percent even as ordinary income runs up to 11 percent, and after years as a crypto-hostile state it dropped its money transmitter license for digital currency firms in 2024, reopening the market. For a holder sitting on a large long-term gain, borrowing against Bitcoin still sidesteps the sale that would trigger that 7.25 percent state tax plus federal capital gains tax.
By Steven Han and Michael Song ·Availability verified September 15, 2026 · Verified daily · rates last changed August 22, 2026 · Hawaii tax and regulatory review July 22, 2026
Sell or borrow in Hawaii: the tax math
Selling Bitcoin in Hawaii can trigger up to 7.25 percent in state tax on a long-term gain (and up to 11 percent on a short-term gain) on top of federal capital gains tax, while borrowing against your Bitcoin is not a sale and so is not itself a taxable event.
Hawaii has a personal income tax with a top marginal rate of 11 percent, one of the highest state rates in the country, across 12 brackets. Unlike most states, it does not tax long-term capital gains as ordinary income. Instead it applies an alternative tax that caps the rate on a long-term gain at 7.25 percent, or the taxpayer's marginal rate if lower, so a large long-term Bitcoin gain is taxed at up to 7.25 percent at the state level. Short-term gains on Bitcoin held a year or less are taxed as ordinary income at rates up to 11 percent, and a pending bill (HB 1850) would tax capital gains as ordinary income for tax years after December 31, 2026, though it is not enacted.
Important: not tax or legal advice
The tax and regulatory information on this page is general information, not tax, legal, or investment advice, and the rates shown are illustrative top-of-schedule figures, not a calculation of what you personally would owe. borrowonbitcoin.com is published by Sypher Capital; we are a publisher and affiliate referral source, not a lender, broker, registered investment advisor, tax preparer, or law firm. The state and federal figures here are compiled from public sources, including IRS Revenue Procedures, state departments of revenue and taxation, state statutes, and the Tax Foundation, and are current only as of the tax year shown; the sources are linked at the foot of this page. Tax and licensing law change, sometimes mid-year, and how any of it applies to you depends on your income, filing status, residency, cost basis, holding period, local taxes, and other facts this page does not capture, so your actual result can differ materially. The tax treatment of Bitcoin-backed loans is itself unsettled and still developing. Borrowing against Bitcoin carries its own risks, including forced liquidation of your collateral. Lender availability and a state's rules can both change; confirm current eligibility with the lender, and confirm your own tax situation with a CPA or qualified tax professional, before acting on anything here.
Hawaii tax and regulatory facts for the 2026 tax year, last reviewed July 22, 2026. Sources are listed at the foot of this page.
Lenders available in Hawaii
| Lender | APR | Max LTV | Custody | Eligibility note | Review |
|---|---|---|---|---|---|
 SALT | APRfrom 7.49% | Max LTVup to 70% | CustodyLender-held | From $5,000 | Learn More |
 Ledn | APRfrom 9.25% | Max LTVup to 50% | CustodyQualified custodian | From $1,000 | Learn More |
 Figure | APRfrom 9.76% | Max LTVup to 75% | CustodyLender-held | From $5,000 | Learn More |
 APX Lending | APRfrom 9.99% | Max LTVup to 60% | CustodyQualified custodian | US loans paid in USDC · $25k min | Learn More |
 Unchained | APRfrom 14.18% | Max LTVup to 50% | CustodyCollaborative multisig | Commercial only · entities · $150k min | Learn More |
Estimate your rate in Hawaii
Borrowing $100,000 against 2.65 BTC ($200,000) is 50% LTV. BTC reference ≈ $75,600.
4 lenders serve Hawaii at this size and LTV, lowest effective APR first. Effective APR includes origination fees.
SALTLowest APRFigureAPX LendingLednNot available in Hawaii
Strike, Arch do not currently lend in Hawaii, based on each lender's stated coverage.
Why lender coverage looks the way it does in Hawaii
Hawaii no longer requires a state money transmitter license for digital currency companies. The Division of Financial Institutions concluded its Digital Currency Innovation Lab on June 30, 2024, and effective July 1, 2024, crypto firms may operate in the state without a Hawaii money transmitter license, subject instead to applicable federal requirements such as FinCEN registration. There is no Bitcoin-specific lending statute or usury carve-out, so which lenders serve Hawaii residents depends on each lender's own multistate licensing rather than a crypto-specific rule.
Bitcoin and crypto in Hawaii
Hawaii was historically one of the hardest states for crypto firms: a 2017 interpretation of its money transmitter law treated customer crypto as requiring an equal cash reserve, an effective double-reserve rule that pushed Coinbase and others to stop serving the state.
Hawaii bitcoin law & policy tracker (2026)
Last reviewed · Reviewed quarterly
Hawaii was for years the hardest state in the country to serve with a crypto business. It fixed that in 2024, and the platforms came back.
The arc, which is the whole story
- Superseded2017 interpretation
The double-reserve rule
Hawaii read its money transmitter law to require a firm holding customer crypto to hold an equal amount of cash in reserve. In effect a platform had to hold both the bitcoin and its dollar value.
The result was predictable: Coinbase and others stopped serving Hawaii residents rather than comply.
- Closed 2024Digital Currency Innovation Lab (2020 to 2024)
A sandbox while regulators worked it out
Hawaii ran a sandbox letting firms operate without the money transmitter license while the Division of Financial Institutions studied the market. A four-year holding pattern rather than a fix, but an honest one.
- In forceMid-2024
Money transmitter requirement dropped for crypto
Hawaii removed the money transmitter requirement for crypto entirely, and Coinbase and other platforms resumed serving residents.
This is the only full reversal in this tracker series that runs toward openness. Arkansas reversed a protection; Hawaii reversed a restriction.
Tax and lending
Hawaii's top capital gains rate is 7.25 percent, on the higher side, so the state share of a sale is meaningful.
The 2024 change matters for availability rather than for terms: a state that once effectively excluded crypto businesses no longer does. five of the seven lenders we track serve Hawaii, with Strike and Arch sitting it out.
Legislative status is current as of August 27, 2026 and re-checked quarterly. Bills move, take effect, and die between reviews, so confirm anything you plan to act on against the primary sources linked above and at the foot of this page. This is information, not legal or tax advice.
Lender availability above reflects each lender's stated state coverage, which we verify daily. This page is information, not legal or financial advice, and a lender's coverage or a state's rules can change, so confirm current eligibility with the lender when you apply.
Frequently asked
Does Hawaii tax me when I take a loan against my Bitcoin?
No. Pledging Bitcoin as collateral for a loan is not a sale, so it is not a taxable event under federal or Hawaii tax rules. By contrast, selling Bitcoin to raise the same cash realizes a capital gain, which Hawaii taxes at up to 7.25 percent on a long-term gain (and up to 11 percent on a short-term gain) on top of federal capital gains tax. This publisher does not give tax advice; confirm your situation with a qualified professional.
Can I get a Bitcoin-backed loan in Hawaii in 2026?
Yes. Hawaii dropped its state money transmitter license requirement for digital currency companies effective July 1, 2024, after concluding its Digital Currency Innovation Lab, which reopened the state to platforms that had previously withdrawn. Availability of any specific lender still depends on that lender's own multistate licensing, so coverage varies by provider.
How does Hawaii tax gains if I do sell my Bitcoin?
A long-term gain (Bitcoin held more than one year) is taxed under Hawaii's alternative tax at a maximum of 7.25 percent, or your marginal rate if lower. A short-term gain is taxed as ordinary income at rates up to 11 percent. A pending bill, HB 1850, would tax capital gains as ordinary income for tax years beginning after December 31, 2026, but it is not currently law.
Can I get a Bitcoin-backed loan in Hawaii?
Yes. 5 of the Bitcoin-backed lenders we track serve Hawaii, with starting rates from 7.49% APR. They include SALT, Ledn, Figure, APX Lending, and others.
Which lenders offer Bitcoin-backed loans in Hawaii?
SALT, Ledn, Figure, APX Lending, Unchained all serve Hawaii according to their stated coverage, which we verify daily.
Are any Bitcoin loan lenders not available in Hawaii?
Strike, Arch do not currently lend in Hawaii.
Bitcoin loans in nearby states
New to this? How Bitcoin-backed loans work covers LTV, margin calls, and custody before you compare rates in Hawaii.
Sources
- Hawaii's top marginal individual income tax rate is 11 percent across 12 brackets · taxfoundation.org
- Hawaii taxes long-term capital gains under an alternative tax capped at 7.25 percent rather than as ordinary income · tfhawaii.org
- Hawaii concluded its Digital Currency Innovation Lab on June 30, 2024, and no longer requires a state money transmitter license for digital currency companies as of July 1, 2024 · cca.hawaii.gov
- Hawaii's Money Transmitters Modernization Act no longer applies to cryptocurrency activities after the 2024 regulatory change · gtlaw.com
- Hawaii Division of Financial Institutions · cca.hawaii.gov
- Hawaii Department of Taxation · tax.hawaii.gov
Cite this data
Bitcoin-backed loan availability in Hawaii: 5 of 7 tracked lenders serve the state, from 7.49% APR. borrow/on/bitcoin, verified September 15, 2026. https://borrowonbitcoin.com/bitcoin-loans/hawaii
Free to cite with attribution and a link. Media inquiries welcome.
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