I know of people who have used lending protocols to borrow stablecoins, used a centralized exchange to convert those stables to fiat, and used that fiat to purchase things like cars and houses. As I understand it the reason they did this is they assumed it would avoid a taxable event?
I don't know exactly the tax situation, but with stocks it's very common that founders or wealthy people in general take loans against their stocks instead of selling, so there's probably good reasons.
