The process is simpler than most people think. Here is exactly what happens — from choosing a platform to receiving your funds.
Step 1: Choose a platform
Decide what matters most: custody model, rate, LTV, or features. Unchained for custody-first. Ledn for retail simplicity. Arch for $500K+. Use our comparison tool to narrow it down. For a deeper framework, see our guide to choosing the right platform.
Step 2: Create an account and complete KYC
Most centralized platforms require identity verification. In our tracked dataset, the no-KYC exceptions are DeFi workflows like Lava, Aave, and Maker. If you choose a CeFi lender, faster retail KYC flows often clear within minutes or hours, while institutional or multi-sig setups can take longer. Have your government ID and proof of address ready.
Step 3: Deposit collateral
Transfer your BTC to the platform wallet. For custodial platforms (Ledn, Figure), you send BTC to their address. For multi-sig (Unchained), you set up a collaborative vault — you control the keys. Transfer times vary from minutes to a few hours depending on network congestion.
Step 4: Receive your loan
Once collateral is confirmed, funds are sent to your bank account (ACH or wire) or crypto wallet. Most platforms fund within 1–3 business days. Ledn's median funding time is 9.7 hours.
Step 5: Repay or reclaim collateral
At term end, repay principal + interest. Your collateral is released. Some platforms allow partial releases or loan rollovers. Make sure you understand the process before signing.
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