Sydney, Australia – 5 November 2025 – Vield Capital has secured the first-ever ATO ruling confirming that their Bitcoin-backed lending product does not trigger capital gains tax when customers deposit cryptocurrency as collateral.
The private ruling (issued 27 October 2025) is the first time the ATO has applied the securities lending CGT exemption to cryptocurrency, and the first ruling on securities lending since 2014. Vield thanks Harrison Dell of Cadena Legal for both assisting to obtain this ruling and volunteering as the taxpayer subject to the ATO ruling.
Vield is now the only crypto lending platform in Australia with positive ATO confirmation that its product doesn't trigger CGT for users.
Based on the success of this ruling, Vield is now considering applying for a product ruling that would extend this tax treatment to all Vield customers.
Why This Matters
For years, crypto holders have faced a critical barrier: does depositing Bitcoin as loan collateral trigger immediate CGT? For example, early Bitcoin holders with substantial gains have significant uncertainty that has prevented them from accessing liquidity through lending products.
The ATO has now confirmed that when you use Vield's product, depositing your Bitcoin does not trigger CGT.
What Makes Vield Different
The ATO was specific that Vield’s segregated custody and no rehypothecation model were essential for the ruling.
"Only Vield currently has any ATO indication that their product doesn't trigger CGT for customers," said Harrison Dell, Managing Director of Cadena Legal, who advised on the ruling. "We're now discussing a product ruling that would extend this certainty to all Vield customers."
A product ruling would allow all Vield customers to rely on the same tax treatment, providing certainty without needing individual private rulings.
The ruling was published on the Edited Private Advice register on October 27 2025.
https://www.ato.gov.au/law/view/document?src=ws&pit=99991231235958&arc=false&start=1&pageSize=10&total=1&num=0&docid=EV%2F1052452380351&dc=false&stype=find&tm=phrase-basic-1052452380351
About Cadena Legal
Cadena Legal is a specialist law firm delivering innovative and cutting-edge tax and legal advice, personally tailored to the unique needs of its diverse Australian and international clientele. Founded by renowned tax lawyer Harrison Dell in 2022, Cadena challenges the status quo across a range of issues including crypto assets, complex fund management and domestic and cross- border structuring.
For more information, contact Cadena Legal:Harrison Dell, Managing Director Level 11, 88 Tribune Street, South Brisbane QLD 4101 hello@cadenalegal.com.au | 07 3521 6053
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