10 Best Bitcoin (BTC) Backed Loan Providers in 2025

·

Accessing liquidity without selling your Bitcoin has become a cornerstone strategy for long-term holders and active investors alike. Bitcoin-backed loans allow users to leverage their BTC holdings as collateral to borrow cash or stablecoins, maintaining exposure to price appreciation while unlocking capital for investments, emergencies, or everyday expenses.

This guide explores the top 10 Bitcoin (BTC) backed loan providers in 2025, covering both centralized finance (CeFi) platforms like Nexo and Binance, and decentralized protocols such as Aave, MakerDAO, and Solend. Whether you prioritize regulatory compliance, low interest rates, fast funding, or DeFi innovation, this overview helps you make an informed decision.

What Are Bitcoin-Backed Loans?

Bitcoin-backed loans let you borrow funds—typically in USD, USDC, or other stablecoins—by locking up your BTC as collateral. These are overcollateralized loans, meaning you must deposit more in BTC value than the amount you wish to borrow, usually between 50% and 80% Loan-to-Value (LTV), depending on the platform.

Key benefits include:

Core keywords: Bitcoin-backed loans, BTC collateral loans, crypto lending platforms, DeFi lending, CeFi loans, stablecoin borrowing, loan-to-value ratio, non-custodial lending

1. Nexo – Best for Instant Loans & Crypto Card Integration

Nexo remains one of the most trusted CeFi platforms offering instant crypto-backed loans. Users can borrow USD, EUR, or stablecoins with Bitcoin as collateral, with interest rates starting as low as 0% APR based on loyalty tier and LTV.

With over 60 supported cryptocurrencies as collateral and $375 million in insurance coverage for custodial assets, Nexo combines accessibility with strong security. Its integrated Nexo Card allows users to spend loan proceeds directly, making it ideal for real-world utility.

👉 Discover how to unlock instant liquidity with your Bitcoin holdings today.

Key Features:

2. Abra – User-Friendly Platform for Retail Investors

Abra offers a streamlined experience for both beginners and experienced investors seeking BTC-backed loans. The platform allows users to borrow USD stablecoins using Bitcoin as collateral, with competitive interest rates and no credit checks.

Its mobile-first design ensures ease of use, while U.S. regulatory compliance enhances trust. Beyond lending, Abra provides crypto trading and high-yield savings accounts, creating a full-service financial ecosystem.

Key Features:

3. Ledn – Secure BTC Loans with Flexible Options

Ledn specializes in transparent Bitcoin lending, allowing users to access liquidity without divesting their BTC. With a standard 50% LTV ratio, users can borrow up to $5,000 using $10,000 worth of Bitcoin.

Interest rates start at 12.4% annually (14.4% APR), and funds are typically disbursed within 24 hours. Ledn offers two loan types: Standard (rehypothecation allowed) and Custodied (full custody of collateral), giving users control over risk exposure.

Their innovative B2X product even lets users borrow to buy more Bitcoin—effectively doubling exposure.

Key Features:

4. Binance Loans – Most Flexible CeFi Option

As part of the world’s largest crypto exchange, Binance Loans offers unmatched flexibility. Users can choose between flexible-rate, fixed-rate, and VIP loans, with durations from 7 to 180 days.

You can use over 50 cryptocurrencies as collateral and borrow more than 160 different assets. Interest rates update every minute based on market demand, ensuring competitive pricing.

Binance also supports Loan Staking, where users stake their collateral to earn rewards that offset interest costs.

👉 Learn how to maximize your Bitcoin’s earning potential through flexible lending options.

Key Features:

5. Coinbase Loans – DeFi-Powered for U.S. Users

Coinbase brings BTC-backed lending to select U.S. customers (excluding New York) via Morpho, a DeFi protocol running on Coinbase’s Layer-2 blockchain, Base.

To participate, users convert BTC into cbBTC (Coinbase Wrapped Bitcoin), which is then used as collateral to borrow up to $100,000 in USDC. There's no fixed repayment schedule—users repay anytime with variable interest.

However, if the LTV exceeds 86%, liquidation is triggered. This hybrid model blends CeFi convenience with DeFi transparency.

Key Features:

6. Aave – Leading DeFi Lending Protocol

Aave is a non-custodial DeFi platform enabling users to lend and borrow crypto via smart contracts. By depositing BTC or WBTC (Wrapped Bitcoin), users can borrow stablecoins like USDC or DAI at up to 80% LTV.

Interest rates are variable, determined by supply and demand across liquidity pools. Aave operates on Ethereum, Polygon, Avalanche, and other chains, offering cross-chain flexibility.

One standout feature: flash loans—uncollateralized loans repaid within a single transaction block.

Key Features:

7. Compound – Algorithmic Lending on Ethereum

Compound uses algorithmic interest rates to automate borrowing and lending. Users convert BTC into WBTC and deposit it as collateral to borrow assets like USDC at 50–70% LTV.

Rates adjust in real time based on pool utilization. Governance is decentralized via the COMP token, allowing community-driven upgrades.

Key Features:

8. MakerDAO – Mint DAI Using WBTC (With Caveats)

MakerDAO allows users to lock WBTC in a vault to mint DAI, a decentralized stablecoin. The system requires a 150% collateralization ratio and charges a ~1% stability fee.

⚠️ As of August 2024, new WBTC-backed loans are suspended due to custody concerns around BitGo and BiT Global. Existing loans remain unaffected.

Key Features:

9. Curve Finance – Soft-Liquidation Loans on Arbitrum

Curve Finance offers BTC-backed borrowing through its LLAMMA algorithm, which enables "soft liquidations" by gradually converting collateral instead of sudden sell-offs.

Users can borrow crvUSD using wrapped Bitcoin variants like dlcBTC or iBTC on Arbitrum. Participation also earns ARB tokens and reward points.

Key Features:

10. Solend – Fast, Low-Cost Loans on Solana

Solend brings DeFi lending to the high-speed Solana blockchain. Users deposit BTC or wBTC to borrow USDC or USDT at dynamic rates.

With low fees and fast confirmations, Solend excels in user experience. The SLND token enables community governance.

Key Features:

Frequently Asked Questions (FAQ)

Q: Can I get a loan using only Bitcoin as collateral?
A: Yes—most platforms accept BTC or WBTC as primary collateral for loans in stablecoins or fiat.

Q: Are Bitcoin-backed loans safe?
A: They are generally secure if you maintain sufficient collateral and use reputable platforms with insurance or audits.

Q: What happens if my loan gets liquidated?
A: If the value of your BTC drops below the required LTV threshold, the platform may automatically sell part of your collateral to cover the debt.

Q: Do I need a credit check?
A: No—most crypto-backed loans are overcollateralized and do not require traditional credit checks.

Q: Which is better: CeFi or DeFi loans?
A: CeFi offers ease of use and customer support; DeFi provides transparency and control. Your choice depends on technical comfort and risk tolerance.

Q: Can I repay early?
A: Yes—nearly all platforms allow early repayment without penalties.

👉 Start leveraging your Bitcoin today—explore secure, fast, and flexible loan options now.