Best Bitcoin-Backed Loans 2026: Borrow Against BTC Without Selling

Last Updated: March 7, 2026

Why This Guide Exists

The bitcoin lending industry has a body count. BlockFi, Celsius, Voyager, Genesis. All bankrupt. Billions in customer bitcoin, gone.

If you find older articles still recommending those platforms, close the tab. They haven't been updated since the carnage.

This guide covers only platforms that are still operating in March 2026. We fact-checked every rate, fee, and claim against primary sources. Where we found red flags, we say so. Where we have concerns, we explain them. Reader trust matters more to us than affiliate revenue.

:::info Key Takeaways

• [Unchained](/go/unchained) is the only lender using multisig custody where you hold keys. Best collateral security in the industry. Higher cost (~14.2% APR), commercial loans only with a $150,000 minimum, US only.
• [Ledn](/go/ledn) offers two loan types: a standard loan at 10.4% APR (US/Canada) and a custodied loan at 11.4% APR where your collateral is never lent out. S&P BBB- rated loan portfolio. Strongest transparency track record.
• Strike launched bitcoin-backed loans in May 2025 and has since lowered rates to 9.5% APR for US borrowers, with no origination fees. Confirmed no rehypothecation. Still building a track record.
• SALT offers multi-year terms (1, 3, or 5 years) but froze withdrawals during the FTX collapse, needed emergency recapitalization, and received a December 2024 consent order for undisclosed fees and understated APRs.
• Nexo advertises rates as low as 1.9% APR, but that requires NEXO tokens and very low LTV. Base tier rates reach 18.9%. Regulatory baggage includes a $45 million SEC settlement and a $500,000 California fine.
• None of these platforms are FDIC insured. If the lender fails, your collateral may not come back.

:::

The Bottom Line

A bitcoin-backed loan lets you borrow cash using your bitcoin as collateral. You keep your BTC exposure, avoid triggering a taxable event (in most jurisdictions), and get liquidity without selling.

The tradeoff: you are putting your bitcoin at risk. If the price drops far enough, your collateral gets liquidated. If the lender goes under, you could lose everything you deposited. That is not hypothetical. It happened to hundreds of thousands of people in 2022.

In 2026, we see two platforms worth recommending with confidence: [Unchained](/go/unchained) and [Ledn](/go/ledn). Strike is a strong new option with competitive rates and a confirmed no-rehypothecation policy. SALT and Nexo are operational but carry enough baggage that you should understand exactly what you're getting into.

Quick Comparison: Bitcoin Loan Platforms (March 2026)

*Ledn's 2% origination fee is waived for US and Canadian borrowers. International borrowers pay 12.4% (standard) or 13.4% (custodied) APR.

How Bitcoin-Backed Loans Work

You deposit bitcoin as collateral. The lender gives you cash (USD or stablecoins). You pay interest. When you repay, you get your bitcoin back.

The key metric is Loan-to-Value (LTV) ratio, which measures your loan amount against the value of your collateral. At 50% LTV, you deposit $100,000 worth of bitcoin and borrow $50,000. The extra collateral acts as a buffer against price drops.

A Concrete Example

Bitcoin is at $100,000. You deposit 1 BTC. At 50% LTV, you borrow $50,000.

If bitcoin drops to $70,000, your LTV jumps to about 71% ($50,000 divided by $70,000). Most platforms issue a margin call around 70-75% LTV, giving you a window to add more collateral or repay part of the loan.

If bitcoin keeps falling and your LTV hits the liquidation threshold (typically 80-90%), the lender sells your bitcoin to cover the loan. You either act fast or lose your collateral.

During the 2022 bear market, bitcoin fell from $69,000 to $15,500. That is a 77% decline. Anyone with a leveraged position who couldn't meet margin calls got wiped out.

Why Borrow Instead of Sell?

Three main reasons:

1. Tax efficiency. Selling bitcoin triggers capital gains tax. Borrowing against it typically does not. (Consult a tax professional for your specific situation.)
2. Maintain exposure. If you believe bitcoin will appreciate long-term, selling means missing future gains. A loan lets you access cash while keeping your position.
3. Short-term liquidity. You need cash for a business expense, home renovation, or opportunity, but don't want to permanently reduce your bitcoin stack.

Platform Breakdowns

1. Unchained: Best Collateral Security (Multisig Bitcoin Loans)

Unchained is the only bitcoin lender that uses a collaborative multisig custody model. Your collateral sits in a 2-of-3 multisig vault. You hold one key. Unchained holds one key. An independent third-party key agent (such as Fortis) holds the third.

Why this matters: no single party can move your bitcoin. Unchained cannot run off with your funds. They cannot rehypothecate (re-lend) your collateral. If Unchained disappeared tomorrow, you could still recover your bitcoin using your key and the key agent's key.

No other bitcoin lender offers this level of protection. After watching BlockFi, Celsius, and Voyager lose billions in customer deposits, the value of this custody model should be obvious.

Unchained was founded in 2016 and issued its first bitcoin-backed loan in 2017. They have surpassed $1 billion in bitcoin-backed loan originations with no reported losses. In early 2024, they discontinued personal loans to focus exclusively on commercial lending. Individual borrowers are no longer served.

The Details

• LTV: Up to 50% (200% collateral-to-principal ratio)
• Interest rate: 12% with a 2% origination fee (effective APR approximately 14.18%)
• Minimum loan: $150,000 (commercial); $3 million (institutional)
• Loan term: 12 months (360 days; interest-only payments every 30 days, principal due at maturity)
• Prepayment penalty: None
• Credit check: None required
• Funding speed: Typically within 24 hours to 2 business days
• Availability: US only (excludes ID, MA, NM, ND, SD, VT)

What Users Say (Reddit, Forums)

Reddit users consistently praise Unchained's multisig approach and customer support team. The concierge onboarding gets high marks. Common complaints center on the shift to business-only lending (many individual holders feel abandoned), the high APR compared to competitors, high trading fees (1.5% plus a spread), and the absence of features like limit orders or DCA for bitcoin purchases. Some users find the KYC process more invasive than expected.

Pros

1. Multisig custody is genuinely unique. Your collateral is verifiable on-chain at all times.
2. No rehypothecation, ever. Structurally impossible with the multisig model.
3. Strong track record: $1 billion+ in originations through the 2022 crisis with zero reported client losses.
4. No credit check and no prepayment penalties.

Cons

1. Rates are the highest on this list at ~14.2% APR.
2. Only available for commercial entities. Individual borrowers cannot get a loan.
3. The $150,000 minimum is steep and excludes most retail borrowers.
4. US only, with several states excluded.
5. You need to understand multisig concepts (though their team walks you through setup).

Best for: Businesses with significant bitcoin treasuries who prioritize collateral security above all else and are willing to pay a premium for it. If counterparty risk keeps you up at night, this is the answer.

Learn more about Unchained | Get started

2. Ledn: Best Balance of Bitcoin Loan Rates and Transparency

Ledn is a Canadian lender that has built the strongest transparency record in bitcoin lending. They publish proof-of-reserves attestations every six months through an independent CPA firm, plus monthly Open Book Reports. Ledn completed its seventh PoR attestation as of March 31, 2024. They were the first digital asset lender to undergo a PoR attestation with a Certified Public Accountant, back in 2021.

The bigger story is what happened in February 2026. Ledn closed a $188 million asset-backed securities (ABS) offering, backed by over 5,400 bitcoin-collateralized retail loans with a weighted average interest rate of 11.8%. The offering was more than twice oversubscribed. The senior Class A tranche ($160 million) received a preliminary BBB- investment-grade rating from S&P Global in March 2025, while the subordinate Class B tranche ($28 million) was rated B-. That makes Ledn the first crypto-native lending company to earn an investment-grade rating for its loan portfolio. Jefferies served as sole structuring advisor and bookrunner. This is institutional validation that Ledn's underwriting meets traditional finance standards.

Ledn offers two distinct loan types, and understanding the difference matters:

• Standard Loan: 10.4% interest rate. Ledn may lend out your bitcoin collateral to institutions to achieve this lower rate. If you're comfortable with that tradeoff, you save about 1% APR.
• Custodied Loan: 11.4% interest rate. Your bitcoin collateral is held in segregated institutional custody and is not lent out. This is the safer option for borrowers who want to eliminate rehypothecation risk.

Both types carry a 2% origination fee, but the origination fee is waived for US and Canadian borrowers. International borrowers pay 12.4% APR (standard) or 13.4% APR (custodied).

Ledn did have some exposure to FTX and Alameda during the 2022 collapse. They publicly stated that no client assets were lost, pointing to their proof-of-reserves attestations as the key difference between their operations and FTX's opaque accounting. In November 2025, Tether made a strategic investment in Ledn of between $40 million and $50 million to expand Ledn's services and global reach. The company originated over $1 billion in bitcoin-backed loans in 2025 alone, with annual recurring revenue surpassing $100 million and total lifetime originations exceeding $2.8 billion.

The Details

• LTV: 50%
• Interest rate: 10.4% (standard) or 11.4% (custodied); +2% origination fee outside US/Canada
• Minimum collateral: $1,000 in bitcoin (roughly $500 loan at 50% LTV)
• Loan term: Up to 12 months
• Prepayment penalty: None
• Credit check: None required
• Funding speed: Some users report funds within 12 hours
• Availability: 100+ countries (check their site for restrictions)

Ledn also offers B2X loans that let you double your bitcoin exposure. You deposit BTC, Ledn lends you cash to buy more BTC, and the total stack becomes your collateral. This is leveraged bitcoin exposure and is significantly riskier than a standard loan.

What Users Say (Reddit, Forums)

Reddit users generally view Ledn as reliable, often citing its survival through 2022 as a trust signal. Long-term holders and high-value clients praise the integrity of the founders. Positive feedback includes fast funding (sometimes under 12 hours), straightforward loan closing with collateral returned to your transaction account, and flexible repayment. Concerns include a thorough (some say "intensive") verification process, occasional AML compliance holds that can temporarily block repayment or collateral retrieval, and the fact that the standard loan type does lend out your collateral. Several users note that the B2X product is tempting but dangerous during volatile markets.

Pros

1. Competitive rates, especially with the origination fee waiver for US/Canada.
2. Proof-of-reserves every six months, plus monthly loan book data. Industry-leading transparency.
3. S&P-rated loan portfolio. Institutional validation from a major credit agency.
4. Custodied loan option eliminates rehypothecation risk.
5. Low $1,000 minimum collateral. Accessible for smaller borrowers.
6. Available internationally in 100+ countries.

Cons

1. Standard loan type does rehypothecate your collateral. You must specifically choose the custodied option to avoid this.
2. The FTX/Alameda exposure, while managed without client losses, still happened.
3. The B2X product can amplify losses badly if bitcoin drops.
4. Thorough verification can delay onboarding. Some users report AML compliance holds.
5. Past survival does not guarantee future safety.

Best for: Borrowers who want competitive rates with institutional-grade transparency. The custodied loan is the right choice for security-conscious borrowers outside the US who can't access Unchained. The standard loan suits borrowers who prioritize the lowest rate and accept the rehypothecation tradeoff.

Get started with Ledn

3. Strike: Competitive Bitcoin Loan Rates, No Fees

Strike, known primarily as a bitcoin payments app built by Jack Mallers, launched bitcoin-backed loans in May 2025. The product initially launched with a $75,000 minimum for individuals and a 12% starting APR, but Strike has since lowered rates and minimums significantly. As of early 2026, rates start at 9.5% APR for US borrowers and 10.5% APR globally, with no origination fees.

Strike has strong brand credibility in the Bitcoin community. The lending product is still young (under a year old), so there is no multi-year track record to evaluate and no proof-of-reserves program. But importantly, Strike has confirmed in its June 2025 loan terms that collateral is not rehypothecated or on-lent to third parties. That is a meaningful step that reduces one of the major risk factors.

Your bitcoin collateral is held either by Strike or transferred to a vetted third-party capital provider in segregated wallets. Strike maintains legal responsibility for the assets. This is a custodial arrangement, not multisig.

In February 2026, Strike updated its margin call policy to extend the recovery window and adjust LTV thresholds, giving borrowers more flexibility during volatile markets.

The Details

• LTV: Up to 50% (including anticipated interest)
• Interest rate: Starting at 9.5% APR (US) / 10.5% (global); ~13% APR for "payment at maturity" option due to compounding
• Origination fee: None
• Minimum loan: $10,000 (US individuals); $5,000 (global)
• Maximum loan: $2,000,000 (contact Strike directly for $5M+)
• Loan term: 12 months (early closure available after 60 days)
• Prepayment penalty: None
• Late fees: None (10-day grace period for failed payments)
• Liquidation fee: 0.99%
• Credit check: None required; not reported to credit agencies
• Multiple loans: Up to 5 active loans simultaneously
• Repayment options: Monthly interest payments or single payment at maturity
• Refinancing: Available (added August 2025)
• Availability: Select US states and expanding globally

What Users Say (Reddit, Forums)

Reddit discussion is still building since the product is young. Early users on r/CryptoCurrency and r/Bitcoin report a smooth in-app loan process and praise the low fee structure. Some users note confusion about the "payment at maturity" option's higher effective APR due to compounding. The Bitcoin community generally trusts Jack Mallers and Strike's bitcoin-first philosophy, but some caution that trust in a brand is not a substitute for a multi-year track record. A few threads have discussed the third-party capital provider model and want more transparency about which partners hold collateral.

Pros

1. Competitive starting rate at 9.5% APR, lowest among platforms reviewed here.
2. Zero origination fees, prepayment penalties, or late fees.
3. Confirmed no rehypothecation (June 2025 loan terms).
4. Strong brand reputation in the Bitcoin community.
5. Flexible repayment (monthly interest or pay at maturity).
6. Expanding globally with a $5,000 minimum for international borrowers.

Cons

1. Less than a year old as a lending product. No track record through market stress.
2. Custodial model with a third-party capital provider. No multisig.
3. No proof-of-reserves or independent audits of collateral.
4. The "payment at maturity" option effectively costs ~13% APR due to interest compounding.
5. Individual minimum started at $75,000 (now $10,000), showing the product is still evolving.

Best for: US and international borrowers who want competitive rates with no fees and are comfortable with a newer lending product from a trusted Bitcoin brand. Keep loan sizes moderate until the product has survived at least one significant market downturn.

4. SALT: Flexible Loan Terms, Troubled History

SALT (Secured Automated Lending Technology) has been around since 2016, making it one of the oldest crypto lenders. Their standout feature is loan term flexibility: you can lock in rates for 1, 3, or 5 years, which no other bitcoin lender offers.

But you need to know the full history. During the FTX collapse in late 2022, SALT halted customer withdrawals and deposits. Their California lending license was suspended by the DFPI. A planned acquisition by Bnk To The Future fell through because of SALT's FTX exposure. The company converted approximately $64 million in debt through a Series A preferred stock issuance in February 2023 just to stay afloat.

SALT did not file for bankruptcy. Their California license was reinstated on January 15, 2025, and they are actively operating across 44 states and 7 countries.

Then came the December 2024 consent order from the California DFPI, which revealed that SALT had charged undisclosed administrative fees, understated APRs for California borrowers, and failed to assess borrowers' ability to repay. The DFPI secured approximately $162,800 in borrower refunds and $137,500 in penalties. That is a fee transparency violation that directly undermines borrower trust. SALT also settled with the SEC over its earlier $47 million ICO for unregistered security sales. Factor all of this into your risk assessment.

The Details

• LTV: 30%, 50%, or 70% (choose your risk level; 70% only for 1-year terms)
• Interest rates:
• 1-year: 9.95% (30% LTV) to 14.45% (70% LTV)
• 3-year: 11.95% (30% LTV) to 12.95% (50% LTV)
• 5-year: 12.95% (30% LTV) to 13.95% (50% LTV)
• Origination fee: 1%
• Stabilization fee: 3-5% if triggered
• Liquidation fee: 5%
• Processing fee: 1.5% for crypto payments without auto-pay or loan payoffs with collateral
• Minimum loan: $5,000
• Prepayment penalty: None
• Availability: 44 US states and 7 countries

SALT offers a Stabilization feature that automatically converts your collateral to USDC if your LTV exceeds roughly 91%, rather than liquidating at a loss. This can protect you during flash crashes, though it means exiting your bitcoin position temporarily. Note: converting BTC to USDC may trigger a taxable event.

Margin call process: Warning at 75% LTV. Formal margin call at 83.33% LTV, giving you 48 hours to add collateral or pay down the loan. Stabilization or liquidation at 90.91% LTV.

What Users Say (Reddit, Forums)

Reddit sentiment on SALT is predominantly negative. Users cite "horrific" terms, the 2022 withdrawal freeze, and past SEC issues. Multiple Redditors question whether the company is still legitimate. One detailed late-2025 account describes receiving a margin call after a sudden BTC price drop, difficulty adding collateral quickly due to network fees and bank transfer delays, and partial liquidation at the worst possible moment. Some Trustpilot reviews praise easy access and quick approval, but the overall online sentiment is cautious to hostile.

Pros

1. Multi-year terms (3 and 5 years) are genuinely useful for long-term borrowers who want rate certainty.
2. The 70% LTV option gives more borrowing power (at higher risk).
3. Stabilization feature offers an alternative to hard liquidation.
4. Operating across 44 states with growing international coverage.

Cons

1. The 2022 withdrawal freeze is a serious trust mark.
2. Emergency recapitalization ($64M debt conversion) proves the company couldn't handle FTX fallout alone.
3. December 2024 consent order for undisclosed fees, understated APRs, and failure to assess repayment ability.
4. Separate SEC settlement over unregistered ICO securities.
5. Rehypothecation policy not clearly confirmed.
6. Fee structure is complex with stabilization, liquidation, and processing charges that add up.

Our take: We cannot give SALT the same confidence level as Unchained or Ledn. If you choose SALT for the multi-year terms, understand you're accepting a platform with a proven history of freezing customer access during a crisis and multiple regulatory enforcement actions. Only deposit bitcoin you can afford to lose entirely.

5. Nexo: Cheapest Headline Rate, Highest Risk Profile

Nexo advertises rates as low as 1.9% APR, which would be the cheapest bitcoin-backed loan by a wide margin. But you should know exactly what it takes to get that rate and what Nexo's regulatory history looks like.

The 1.9% rate requires Platinum Tier status (hold at least 10% of your portfolio in NEXO tokens) and an LTV of 20% or lower. At 20% LTV, you're over-collateralizing by 5x, which defeats much of the purpose of a bitcoin-backed loan. For most borrowers without NEXO tokens, the base tier rate is 17.9% APR (or 18.9% APR if your portfolio is under $5,000 or if you repay within 45 days). Those base rates are the highest on this list by far.

The rate structure is designed to push you into buying and holding NEXO tokens, which adds altcoin risk to what should be a bitcoin-only decision.

A February 2025 policy change introduced a minimum $5,000 portfolio balance to qualify for any loyalty tier benefits. Accounts below that threshold get base-level rates only.

The regulatory history matters. In January 2023, Nexo paid a $45 million settlement to the SEC and state regulators for failing to register its Earn Interest Product as a security. They exited the US market entirely. In January 2026, the California DFPI fined Nexo another $500,000 for issuing 5,456 loans to California residents without a proper license between July 2018 and November 2022, and for failing to assess borrowers' ability to repay. Nexo must transfer all California client funds to its licensed US affiliate within 150 days and implement IP-based geoblocking to prevent unlicensed access.

Nexo returned to the US market in February 2026 through a partnership with Bakkt, which provides regulated trading infrastructure and holds US money transmitter licenses plus a New York BitLicense. The new offering is structured differently from its previous products, delivered through licensed US partners including, where applicable, an SEC-registered investment adviser.

In January 2026, Nexo launched its Zero-Interest Credit (ZiC) product, offering 0% APR and no fees for Bitcoin and Ethereum holders. ZiC provides fixed-duration loans with no liquidation risk during the term, using built-in price protection parameters (a Minimum Repayment Price to prevent mid-term liquidation and a Maximum Repayment Price to cap gains). Nexo processed over $140 million through private ZiC channels in 2025 before the public launch. Eligibility and coverage details vary.

Nexo is based in Switzerland and Bulgaria. Your bitcoin collateral may be re-lent to generate yield. Nexo does not publish a public proof-of-reserves, which has been a consistent complaint from Reddit users since 2024.

The Details

• LTV: Up to 50% (standard); up to 70% with Booster feature
• Interest rates: 1.9% (Platinum, under 20% LTV) to 18.9% (Base tier under $5K or early repayment)
• Minimum loan: ~$50 (extremely low barrier)
• Minimum portfolio for tier benefits: $5,000
• Loan term: Open-ended credit line (no fixed term)
• Prepayment penalty: None (but 18.9% rate applies if repaying within 45 days of withdrawal)
• ZiC product: 0% APR, fixed term, no liquidation risk, separate eligibility
• Availability: Most countries; US access resumed February 2026 with restrictions

What Users Say (Reddit, Forums)

Reddit feedback is polarized. Loyal users praise Nexo's ease of use, instant access to funds, and responsive customer service. Critics point to devastating liquidation stories (one user detailed losing substantial Ethereum holdings over a 2018-2025 loan period), confusion about how loans affect interest earnings and loyalty tiers, the 18.9% base rate shocking new users, hidden spreads on exchanges, and the absence of proof-of-reserves. The February 2025 $5,000 minimum for tier benefits frustrated smaller users who felt locked out of fair rates.

Pros

1. Can be very cheap if you qualify for Platinum and keep LTV under 20%.
2. Open-ended credit line provides flexible access.
3. Very low minimum loan amount (~$50).
4. Instant fund access. Well-designed mobile app.
5. New ZiC product offers 0% APR with no liquidation risk for qualifying borrowers.

Cons

1. The NEXO token requirement introduces altcoin risk to a bitcoin loan decision.
2. Base tier rates (17.9-18.9%) are the highest on this list.
3. $45M SEC settlement and $500K California fine for unlicensed lending.
4. Potential rehypothecation of your collateral.
5. No public proof-of-reserves.
6. Offshore jurisdiction (Switzerland/Bulgaria) with limited regulatory recourse.
7. 18.9% rate penalty for repaying within 45 days.

Our take: Nexo is functional and has the lowest barrier to entry. But between the regulatory penalties, token requirement, rehypothecation risk, lack of proof-of-reserves, and offshore structure, this is the highest-risk option on this list. The new ZiC product is interesting but too new to evaluate fully. If you use Nexo, keep it to small amounts you can fully afford to lose. For significant bitcoin holdings, Unchained or Ledn are far safer choices.

Ones to Watch: Emerging Bitcoin Lending Platforms

A few newer platforms are worth tracking, even though we don't yet recommend them with the same confidence as our main five:

Hodl Hodl Lend (Debifi)

Hodl Hodl Lend — now operating under the Debifi brand — is a peer-to-peer bitcoin lending platform using a non-custodial multisig system. This is the closest thing to truly decentralized bitcoin lending:

• No KYC required. Borrowers and lenders transact directly.
• Non-custodial multisig escrow. Your bitcoin collateral sits in a 2-of-3 multisig address. Neither Hodl Hodl nor the lender can unilaterally seize it.
• Rates set by the market. Since it's P2P, interest rates depend on what lenders are offering. Typical rates range from 8-15% depending on LTV, term, and market conditions.
• Institutional lender expansion (2025). Debifi added institutional lending pools, improving liquidity beyond the original P2P model.

The tradeoffs: Liquidity is thinner than centralized platforms, especially for larger loans ($50K+). The UX is rougher. Matching with a lender takes time. And because there's no central company backing the loan, if something goes wrong in the escrow process, dispute resolution is limited. There's also no regulatory framework or insurance.

Why it matters: Hodl Hodl Lend is the only lending option that preserves both your privacy and your key ownership. For Bitcoiners who refuse custodial solutions on principle, this is the only game in town. We'll add a full review when the platform matures further.

Arch Lending

Arch is a US-based platform that explicitly does not rehypothecate client assets and partners with Anchorage Digital for institutional-grade custody. In August 2024, Arch secured a $70 million loan financing facility. They accept Bitcoin, Ethereum, and Solana as collateral. Worth watching for borrowers who want US-regulated, no-rehypothecation lending.

Xapo Bank

Xapo Bank combines traditional banking with Bitcoin custody and lending, allowing members to borrow against bitcoin with no rehypothecation. Availability is limited to certain jurisdictions (primarily Europe and Latin America). The banking license adds a regulatory layer that pure crypto lenders lack.

We will add full reviews of these platforms as they develop longer track records.

The Lending Graveyard: Bitcoin Platforms That Failed

If you're researching bitcoin loans, you'll find older articles still recommending platforms that no longer exist. Here's what happened, why it matters, and how much customers recovered.

Celsius Network

Celsius froze all customer withdrawals in June 2022 and filed for Chapter 11 bankruptcy the following month. The company had been using customer bitcoin deposits for risky DeFi trades, unsecured lending, and propping up its own token price. Billions in customer funds vanished. CEO Alex Mashinsky was criminally charged with fraud.

Recovery: As of early 2026, Celsius has completed four rounds of distributions totaling over $3 billion in cash and cryptocurrency. The third distribution (August 2025) added $220.6 million. The fourth distribution (announced January 2026) allocated $344.4 million, funded partly by a Tether settlement. Total recovery stands at approximately 64.9% of claims, against an original target of 67-85%. Celsius plans at least two more payout rounds, but future distributions will shift from Bitcoin to USD and stablecoins.

BlockFi

BlockFi filed for bankruptcy in November 2022 after its financial lifeline, FTX, collapsed. BlockFi had already accepted a $400 million bailout from FTX earlier that year. When FTX went down, BlockFi went with it.

Recovery: BlockFi is nearing the end of its bankruptcy process. As of March 2025, nearly 97% of full distributions had been made to US clients, with 43% of non-US clients receiving their full distribution. BlockFi sold its FTX claims at a premium, enabling a projected 100% distribution for eligible customer and general unsecured creditor claims in fiat terms. Final distributions are expected in Q2 2026. The claims window closes in March 2026.

Voyager Digital

Voyager halted withdrawals and filed for bankruptcy in July 2022 after its major borrower, Three Arrows Capital, defaulted on a $650 million loan. Voyager had lent out customer deposits to generate yield, and when the borrower couldn't pay, customers paid the price.

Recovery: Voyager's liquidation plan approved in May 2023 cleared the way for approximately $1.33 billion in cryptocurrency to return to customers. A second distribution in May 2025 sent out $587 million via 495,000 checks, bringing recovery to roughly 35.72% of claims. Recovery could reach 63.74% if litigation against FTX succeeds. Claims against Three Arrows Capital are ongoing but expected to take years.

Genesis Lending

Genesis filed for bankruptcy in January 2023 with over $3 billion in claims. Its parent company, Digital Currency Group, had deep exposure to Three Arrows Capital and FTX.

Recovery: Genesis completed its restructuring in August 2024 and distributed approximately $4 billion in digital assets and dollars. BTC creditors received 51% of their in-kind value (166% of petition-date value due to price appreciation). An additional $2.2 billion was distributed to Gemini Earn users between May and June 2024. Additional distributions depend on ongoing claims reconciliation.

The Pattern

These companies took custody of customer bitcoin, lent it out or used it for speculative activities, and when the market turned, there was nothing left to return. This is rehypothecation risk made real. This is why we emphasize custody models and transparency throughout this guide.

Any article still recommending these platforms has not been updated. Treat outdated lending recommendations as a red flag about the source's credibility.

The Risks You Need to Understand Before Borrowing Bitcoin

Bitcoin-backed loans carry real risks. Understanding them is not optional.

Liquidation Risk

If bitcoin's price drops significantly, your collateral gets liquidated. At 50% LTV, a roughly 40-50% price decline can trigger full liquidation. At 70% LTV, you have almost no buffer.

During the 2022 bear market, bitcoin fell 77% from its all-time high. Anyone with a bitcoin-backed loan who couldn't meet margin calls lost their collateral. This is the most common way people lose bitcoin through lending.

How to manage it: Borrow at the lowest LTV you can afford. Keep extra bitcoin available to add as collateral during downturns. Set price alerts so you're not caught off guard. Never borrow more than you can comfortably manage during a 50% price decline.

Counterparty Risk

When you deposit bitcoin as collateral, you are trusting the lender to return it. If they go bankrupt, mismanage funds, get hacked, or commit fraud, your bitcoin may be gone. No amount of terms-of-service protections help in a bankruptcy proceeding where you're an unsecured creditor.

The only structural exception on this list is Unchained, whose multisig model means they physically cannot move your collateral without your key. For everyone else, you are trusting the platform entirely.

How to manage it: Choose platforms with proof-of-reserves, regulatory compliance, and a track record of surviving bear markets. Never deposit more bitcoin than you can afford to lose. If you're depositing a significant portion of your holdings, multisig custody or a custodied loan option is worth the higher interest rate.

Rehypothecation Risk

Some lenders re-lend your collateral to generate additional yield. If those secondary loans go bad, your collateral is at risk even if bitcoin's price hasn't moved. This is exactly what destroyed Celsius. They used customer bitcoin for risky DeFi trades, unsecured loans, and market-making activities. When those bets failed, customer bitcoin evaporated.

Here's how each platform stacks up:

• Unchained: Rehypothecation structurally impossible (multisig)
• Ledn Custodied Loan: Collateral segregated and not re-lent (confirmed)
• Ledn Standard Loan: Collateral may be lent to institutions
• Strike: No rehypothecation (confirmed in June 2025 loan terms; collateral held in segregated wallets)
• Hodl Hodl Lend: Rehypothecation structurally impossible (non-custodial P2P multisig)
• SALT: Not publicly confirmed
• Nexo: May lend out your collateral

The rule: Ask every lender, "Do you rehypothecate my collateral?" If they can't give you a clear, documented "no," treat that as a risk factor.

Tax Implications of Bitcoin Loans

In most jurisdictions, taking a loan against bitcoin is not a taxable event. But there are important nuances:

• If your collateral gets liquidated, that counts as a taxable sale of bitcoin
• Interest payments may or may not be tax-deductible depending on how you use the loan proceeds
• Tax laws change. What's non-taxable today may not be tomorrow
• SALT's stabilization feature (converting BTC to USDC) may trigger a taxable event
• Storing your seed phrase securely remains critical regardless of how you use your bitcoin

Consult a tax professional before taking a significant bitcoin-backed loan. This is not financial advice.

How to Choose the Right Bitcoin Loan Platform

Security above all else? Unchained. The multisig model is the gold standard. Your bitcoin is safer here than with any other lender. You pay more, but you sleep better. Requires a business entity and at least $150,000.

Best rates with strong transparency? Ledn. Choose the custodied loan (11.4% APR for US/Canada) if you want no rehypothecation, or the standard loan (10.4%) if you're comfortable with the tradeoff. S&P-rated loan portfolio. The strongest all-around option for most borrowers.

Lowest cost, confirmed no rehypothecation? Strike offers 9.5% APR with no origination fees and confirmed no rehypothecation. The product launched in May 2025, so the track record is short but growing.

Need a multi-year loan? SALT is the only option for 3 or 5 year terms, but read the risk section about their history and fee transparency issues carefully.

No KYC, non-custodial? Hodl Hodl Lend is the only P2P option with multisig escrow. Rates vary (~8-15%), liquidity is limited, but your privacy and key control are preserved.

Very small, quick loan? Nexo has the lowest minimums but the highest risk profile. Only for amounts you'd be okay losing entirely.

Before You Borrow: A Checklist

1. Do you actually need a loan? Borrowing against a volatile asset for discretionary spending is risky. Make sure the use case justifies the risk.
2. Can you handle a margin call? If bitcoin drops 30-40%, can you add collateral or make a partial repayment within hours? If not, borrow less.
3. Have you calculated the true cost? Add up interest payments, origination fees, and the opportunity cost of locking up your bitcoin. Compare that to the tax cost of simply selling. Sometimes selling is cheaper.
4. Is the rest of your bitcoin in [self-custody](/learn/self-custody-guide/)? Only collateralize what you can afford to lose. Keep your long-term stack in a hardware wallet.
5. Have you read the fine print? Every platform has different liquidation thresholds, fee structures, and terms. Read them.
6. Have you talked to a tax professional? Especially for larger loans. The tax implications are real.

Frequently Asked Questions About Bitcoin Loans

Is borrowing against bitcoin a taxable event?

In most US jurisdictions, taking a loan against bitcoin is not considered a taxable event because you're not selling or disposing of the asset. However, if your collateral gets liquidated, that sale is taxable. Interest payments may be deductible depending on how you use the loan proceeds. Tax laws vary by country and change frequently. Consult a tax professional for your specific situation.

What happens if bitcoin's price crashes while I have a loan?

Your LTV ratio increases as bitcoin's price falls. Most platforms issue a margin call around 70-75% LTV, giving you time to add more collateral or repay part of the loan. If you don't act and LTV hits the liquidation threshold (typically 80-90%), the platform sells enough of your bitcoin to cover the loan or closes it entirely. In a severe crash, you could lose all your collateral. The 2022 bear market wiped out borrowers who couldn't meet margin calls during bitcoin's 77% decline.

Can I get a bitcoin-backed loan without KYC?

All five main platforms in this guide require identity verification (KYC). Hodl Hodl Lend (operating as Debifi) is the leading no-KYC option — a peer-to-peer platform using non-custodial multisig escrow where neither the platform nor the lender can unilaterally seize your collateral. Rates vary by market (~8-15% APR) and liquidity is thinner than centralized platforms, but it's the strongest privacy-preserving option. Decentralized lending protocols like Aave also exist without KYC, but they typically work with wrapped bitcoin on other blockchains and carry smart contract risk. See our Ones to Watch section for more details on Hodl Hodl Lend.

What is the minimum amount I can borrow?

It varies widely. Nexo allows loans as small as roughly $50. Ledn requires about $1,000 in collateral (approximately $500 at 50% LTV). SALT starts at $5,000. Strike requires $10,000 for US borrowers ($5,000 globally). Unchained has the highest minimum at $150,000 and only serves business entities.

Are bitcoin-backed loans safe?

No financial product is completely safe. The 2022 collapse of Celsius, BlockFi, Voyager, and Genesis proved that bitcoin lending platforms can and do fail, taking customer deposits with them. The main risks are liquidation (bitcoin price drops), counterparty risk (the platform fails), and rehypothecation (your collateral is re-lent and lost). You can reduce risk by choosing platforms with verifiable custody models, proof-of-reserves, and by borrowing at conservative LTV ratios. The safest custody model available is Unchained's multisig approach, where no single party controls your bitcoin.

What is the difference between custodial and non-custodial bitcoin loans?

With a custodial loan (Ledn, Strike, SALT, Nexo), the platform takes full control of your bitcoin collateral. You trust them to hold it safely and return it when you repay. With a collaborative custody model (Unchained), your bitcoin sits in a multisig wallet where no single party has enough keys to move it. This dramatically reduces theft, mismanagement, and loss risk if the platform fails. Learn how multisig works in our multisig explainer.

How much bitcoin do I need to get a loan?

At 50% LTV, you need roughly twice the bitcoin value of the loan you want. For a $10,000 loan, you need about $20,000 in bitcoin. Nexo has the lowest barrier at about $100 in collateral. Ledn requires $1,000 in bitcoin. SALT requires enough BTC to cover a $5,000 loan. Strike requires collateral for a $10,000 minimum loan ($5,000 globally). Unchained requires enough BTC to back a $150,000 commercial loan.

What happened to BlockFi, Celsius, and Voyager?

All three filed for bankruptcy in 2022. Celsius froze withdrawals in June 2022 after misusing customer deposits for risky trades; its CEO was criminally charged with fraud. As of early 2026, creditor recovery stands at about 64.9% across four distribution rounds totaling over $3 billion. BlockFi collapsed in November 2022 after FTX went bankrupt, but is nearing 100% distribution for eligible claims by Q2 2026. Voyager filed in July 2022 after Three Arrows Capital defaulted on $650 million; distributions currently stand at roughly 35.72% of claims, with potential for 63.74% if FTX litigation succeeds.

What are the risks of using bitcoin as loan collateral?

The four main risks are: (1) Liquidation, where a bitcoin price drop pushes your LTV past the threshold and your BTC is sold, (2) Counterparty risk, where the lending platform fails, gets hacked, or commits fraud, (3) Rehypothecation, where the lender re-lends your collateral and those secondary loans go bad, and (4) Regulatory risk, where changing laws could affect your loan terms or the platform's ability to operate. You can mitigate these by choosing low LTV ratios, picking transparent lenders with proof-of-reserves, and keeping most of your bitcoin in self-custody.

Which bitcoin loan platform has the lowest interest rates?

On paper, Nexo's 1.9% APR is the lowest, but reaching that rate requires holding NEXO tokens and borrowing at just 20% LTV. Realistically, Strike's 9.5% APR (US) with no origination fees offers the best all-in cost for most borrowers. Ledn comes in at 10.4% (standard) or 11.4% (custodied) for US/Canada with no origination fee. Unchained is the most expensive at ~14.2% APR, but you're paying for multisig security that no other lender provides.

Is the bitcoin lending industry safe after the Celsius and BlockFi collapses?

The industry is safer than it was in 2021-2022, but "safe" is relative. The collapses of Celsius (fraud), BlockFi (FTX contagion), Voyager (bad lending to Three Arrows Capital), and Genesis ($3B+ in claims) removed the worst actors. Platforms that survived — Unchained, Ledn, Strike — have responded with proof-of-reserves, segregated custody, and clearer rehypothecation policies. Regulatory pressure is also increasing: SALT received a consent order for undisclosed fees, Nexo paid $45.5M in settlements. The surviving platforms are more transparent, but none are risk-free. Treat any bitcoin you collateralize as bitcoin you could lose. Keep the bulk of your stack in self-custody.

Related Reading

• [Self-Custody Guide](/learn/self-custody-guide/): Before you collateralize any bitcoin, make sure the rest of your stack is properly secured.
• [Hardware Wallet Reviews](/wallets/): Compare the best hardware wallets for storing bitcoin you're not lending against.
• [Multisig Explained](/learn/multisig-explained/): Understand the technology behind Unchained's custody model.
• [Seed Phrase Guide](/learn/seed-phrase-explained/): Learn why your seed phrase is the master key to your bitcoin.
• [Bitcoin Exchanges](/exchanges/): If you decide selling makes more sense than borrowing, compare regulated exchanges.
• [Unchained Review](/loans/unchained-review/): Full deep-dive review of Unchained's lending and custody services.

This guide is for educational purposes only and does not constitute financial advice. Bitcoin-backed loans carry significant risk, including the total loss of your collateral. Always do your own research and consult with qualified financial and tax professionals before borrowing against your bitcoin.