Borrow Against Crypto
Top platforms that let you borrow against your crypto assets.
| Founded: | 2022 |
| Availability: | US |
| Crypto Backed Loans: | Yes |
| Loan Rate: | 9.5-14 |
| Loan LTV: | Varies |
| Collateral: | BTC, ETH, SOL |
| Origination Fee: | 1.5 |
Arch Lending is a crypto-backed lending platform founded in 2022 and headquartered in New York, NY. It allows users to borrow USD or USDC using digita...
| Founded: | 2022 |
| Availability: | Worldwide (lending unavailable in US, a few states restricted) |
| Crypto Backed Loans: | Yes |
| Loan Rate: | Varies |
| Loan LTV: | Varies |
| Collateral: | Many |
Backpack Exchange, is a fully regulated cryptocurrency exchange built by the team behind the Solana-native Backpack Wallet and the Mad Lads NFT collec...
| Founded: | 2020 |
| Availability: | Worldwide |
| Crypto Backed Loans: | Yes |
| Loan Rate: | 17 |
| Loan LTV: | 90 |
| Collateral: | Many |
| Origination Fee: | 0 |
CoinRabbit is a stablecoin-focused lending/loan platform. CoinRabbit offers monthly yield on USDT (Tether) and USDC (Circle). With no KYC, no fees,...
| Founded: | 2024 |
| Availability: | Worldwide |
| Crypto Backed Loans: | Yes |
| Loan Rate: | 9.99 |
| Loan LTV: | 50-75 |
| Collateral: | BTC, ETH, SOL |
| Origination Fee: | 1-1.5 |
Figure Markets is the first company to receive SEC approval for an interest-bearing stablecoin, YLDS, in the United States. Figure Markets offers a...
| Founded: | 2018 |
| Availability: | Worldwide, Growth accounts unavailable in certain countries and states |
| Crypto Backed Loans: | Yes |
| Loan Rate: | 10.4-12.4 |
| Loan LTV: | 50 |
| Collateral: | BTC |
| Origination Fee: | 2 |
Ledn is a digital-asset lending and savings platform. It allows users to use Bitcoin as collateral to borrow USD or stablecoins, or to earn yields via...
| Founded: | 2017 |
| Availability: | Worldwide |
| Crypto Backed Loans: | Yes |
| Loan Rate: | 2.9-18.9 |
| Loan LTV: | 50 |
| Collateral: | Many |
| Origination Fee: | 0 |
Nexo is one of the most popular crypto interest account platforms, with Nexo Earn. In late 2024, Nexo rebranded itself as a "digital assets wealth ...
| Founded: | 2016 |
| Availability: | Worldwide |
| Crypto Backed Loans: | Yes |
| Loan Rate: | 8.95-14.45 |
| Loan LTV: | 70 |
| Collateral: | BTC |
| Origination Fee: | 1 |
SALT enables individual investors and businesses with crypto assets to generate and preserve long-term wealth. SALT LEND offers attractive rates o...
What is Borrowing Against Crypto?
Borrowing against crypto allows investors to secure loans by using their cryptocurrency assets—such as Bitcoin (BTC), Ethereum (ETH), or USDC—as collateral. This approach provides liquidity without requiring the sale of assets, preserving potential future gains.
Why Borrow Against Crypto?
Crypto-backed loans enable individuals to unlock the value of their holdings while maintaining long-term positions. This strategy benefits investors who need cash for expenses, investments, or business ventures but prefer not to liquidate their crypto holdings.
- Tax Efficiency: Avoid triggering taxable events by borrowing instead of selling.
- Liquidity Access: Use your crypto assets without selling, allowing continued exposure to market growth.
- Flexible Use: Funds from crypto loans can be used for personal or business needs, including further investment.
How Does it Work?
Crypto lending platforms allow users to deposit digital assets into collateral accounts. In return, they receive a loan typically denominated in fiat or stablecoins. If the collateral value drops below a threshold, borrowers may need to add more collateral or risk liquidation.
Benefits of Crypto-Backed Loans
- No Credit Checks: Loans are secured by the value of crypto assets, bypassing traditional credit score requirements.
- Fast Processing: Borrowers can often receive funds within 24-48 hours, much faster than traditional bank loans.
- Maintain Market Exposure: Borrowers continue to benefit from potential price appreciation of their collateralized assets.
Popular Assets for Collateral
The most common assets used for borrowing include:
- Bitcoin (BTC): The leading cryptocurrency, often used due to its liquidity and market stability.
- Ethereum (ETH): Frequently used for loans thanks to its widespread adoption and staking potential.
- USDC (USD Coin): A stablecoin pegged to the US dollar, offering less volatility for secure lending.
Risks to Consider
While borrowing against crypto offers significant benefits, it's essential to consider potential risks:
- Market Volatility: A sharp drop in asset value may lead to liquidation of collateral.
- Interest Rates: Rates may vary significantly between platforms and assets.
- Security: Choose reputable lending platforms to reduce risks associated with fraud or platform insolvency.
