Real-Estate Deposit Guarantee & Cryptocurrency: Everything You Need to Know in 2025
Vincent Castelin
08/26/2025
(08/07/2025)
The increasing adoption of cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH) is paving the way for more frequent use of these assets in the traditional economy, including the real estate sector. Financing a home purchase with crypto-assets is becoming a realistic option that agents and notaries must prepare for.
Despite this emergence, buying property with crypto-assets remains a true obstacle course. The steps are similar to a traditional purchase - until payment, which raises many questions, especially when it comes to the security deposit.
So, is it possible to use crypto for a security deposit within a legal framework - and how?
The Legal Status of Cryptocurrencies in France
In France, crypto-assets have no institutional recognition. According to Article L111-1 of the French Monetary and Financial Code, cryptocurrencies are not recognized as legal tender. The only currency accepted in France is the euro, issued by the European Central Bank (ECB) and the national central banks of Eurozone member states.
Does this prevent you from buying property with cryptocurrencies?
The answer is no! The euro is the only legal currency, but it is not the only possible medium of exchange. Under Article 1342-4 of the French Civil Code, a creditor "may accept something other than what is owed to them as payment."
In other words, it is possible to exchange property for something other than euros through a dation. Based on this, purchasing in cryptocurrency is possible - provided there is mutual agreement between both parties and explicit approval from the notary. Without all of these conditions, the transaction cannot proceed.
Security Deposit: What You Need to Know
A security deposit (also called escrow in real estate) is a sum paid by the buyer when signing the preliminary sale agreement. It generally represents between 5% and 10% of the property price and is deducted from the final payment. The percentage varies because it is not set by law - it depends on factors such as negotiations, the total property price, and the buyer’s profile.
Think of it as a down payment that is refunded only if a standard or contractual suspensive clause applies (loan refusal, withdrawal period, etc.). The deposit is held by a neutral third party (a notary or a real estate agent with a “fund handling” license) or by the seller (the latter being discouraged).
Purpose: to deter frivolous withdrawals by financially committing the buyer.
In France, only euros can be received and held by these professionals:
- Notaries - Article 15 of Decree No. 45-0117 of December 19, 1945 requires that “funds held on behalf of third parties […] must be deposited into current accounts opened at the Caisse des Dépôts et Consignations”. These accounts are denominated in euros and do not accept digital assets.
- Real estate agents - When licensed to handle funds, they must deposit the payment into a special “Article 55” account opened in a French bank or with the CDC, also in euros.
👉 As long as these banking infrastructures do not integrate crypto-assets, any security deposit paid in Bitcoin, Ethereum, or other stablecoins must first be converted into euros before being transferred to the associated escrow account.
Strategies for Paying Your Security Deposit in Crypto
There are therefore two possible approaches:
1. Paying the security deposit directly in cryptocurrency
In this scenario, the deposit is paid directly to the seller in crypto since, as explained earlier, neither notaries nor real estate agents are authorized to hold crypto-assets in escrow. This arrangement must be formalized in a specific clause in the preliminary sale agreement. Several elements must be agreed upon:
- The reference value of the cryptocurrency at the time of payment.
- The refund method in case of withdrawal (fixed euro amount or crypto amount recalculated at that time).
- Explicit acceptance by both parties of any potential volatility risks.
This method is rare and risky due to the lack of a clear legal framework. It requires near-total trust and a very solid contractual arrangement. In addition, the notary and real estate agent must ensure full KYC/AML traceability of the transaction.
2. Paying the security deposit in euros
The safest option is to first convert your crypto into euros. Since most crypto-assets are volatile, this step should be carefully planned to optimize conversion timing. You can then transfer the deposit by bank wire to the notary’s or agent’s escrow account, just like in a traditional transaction.
This option is the most common in France, but it must be done before any formal commitment to ensure funds are available on time and to avoid “random” acceptance by certain banks. It also triggers taxation, regardless of whether the sale proceeds.
The Legibloq Solution: A Secure Bridge Between Traditional Real Estate and Crypto
When buying real estate in crypto, we've seen that two main scenarios exist:
- Direct transfer of crypto-assets to the seller - fast but outside the standard French regulatory framework and without financial guarantees.
- Prior conversion into euros - compliant and safe, but forfeits the “crypto advantage.”
Legibloq offers a hybrid model that combines regulatory security with crypto flexibility. With a single crypto transfer to a dedicated escrow account at a registered Digital Asset Service Provider (DASP), both stages of the purchase are covered:
- Security deposit: converted to euros after the notary’s call for funds, then wired to their CDC account.
- Balance payment: after the notary’s call for funds, converted to euros and wired to the notary - or, if contractually agreed between buyer and seller, transferred in crypto directly to the seller.
Result:
- The seller can be paid directly in euros.
- The buyer remains in crypto for as long as possible, avoiding banking friction.
- The notary and the real estate agent have a fully compliant KYC/AML transaction flow from start to finish.
✨ Simplify your real estate transactions in Bitcoin, Ethereum, or stablecoins: review our case studies below or contact a Legibloq expert today.
Key Takeaway
Crypto-assets are gradually entering real estate transactions, but the security deposit remains a challenge: as of today, only euros are acceptable to trusted third parties like notaries and agents. Without them, there’s no guarantee of getting your deposit back if things go wrong.
With its model, Legibloq turns this obstacle into an advantage: crypto for convenience, euros for peace of mind.
Ready to make it happen? Contact us!
Quick FAQ
Can a notary hold stablecoins? No - accounting rules only allow for euros.
Do I have to pay tax if I convert my crypto to euros for the deposit? Yes - in France, any capital gain is taxable upon transfer of ownership. This is also true in many other countries. This “taxable event” is what Legibloq’s model helps delay until the actual calls for funds.
Can I use USDT or exotic altcoins? Only assets listed by the DASP and compliant with MiCA/AMF are accepted (BTC, ETH, USDC, EURC, etc.).
What happens if the price drops before closing? Overcollateralization protects the seller; a margin call may be triggered if the asset’s value falls below a threshold set in the sale agreement.
From the seller’s side, what obligations are there?None, except in a 100% crypto sale, in which case the seller must open an account and complete KYC with the DASP.
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