How do Bitcoin-backed loans work?

You deposit BTC as collateral with a lending platform and receive a loan in USD, USDC, or other currencies. The loan-to-value (LTV) ratio determines how much you can borrow — typically 50% of your collateral value. You pay interest on the loan and reclaim your BTC when you repay the principal.

What is LTV and why does it matter?

LTV (Loan-to-Value) is the ratio of your loan amount to your collateral value. At 50% LTV with 1 BTC ($105,000), you can borrow $52,500. If BTC drops and LTV exceeds the liquidation threshold (typically 80-90%), your collateral may be liquidated. Lower LTV means more safety buffer.

What is the safest Bitcoin lending platform?

Based on our safety methodology, Unchained scores highest at 9.1/10 due to collaborative multi-sig custody where you hold 2 of 3 keys. Arch scores 7.5/10 with explicit no-use-of-client-assets language and institutional-grade custody, while Ledn scores 7.4/10 with Open Book reporting and a longer tracked lending history. See our full comparison for details.

What happens if BTC drops while I have a loan?

If BTC price drops and your LTV exceeds the margin call threshold (typically 70-85%), you'll receive a margin call to add more collateral. If LTV exceeds the liquidation threshold (typically 85-95%), the platform may liquidate part or all of your collateral. Always maintain a safety buffer below the margin call level.

Do Bitcoin loan platforms check credit scores?

Most BTC lending platforms do not rely on traditional credit-score underwriting. Approval is driven mainly by collateral value, identity verification (KYC), and platform minimums. Unchained explicitly markets a no-credit-check policy, while other lenders still may run sanctions, fraud, or source-of-funds screening. Your credit history is usually not the gating factor.

What is rehypothecation and why should I care?

Rehypothecation means the platform lends, re-pledges, or uses your BTC collateral beyond the direct loan. This was one of the failure modes in prior crypto-lending collapses. Always check both marketing copy and the current loan agreement. Unchained, Figure, Arch, Lava, and Xapo Bank currently have stronger no-rehypothecation language or architecture in our data. Ledn has Open Book reporting but permits re-posting to institutional funding partners; Strike is not fully documented publicly; SALT has risk-disclosure language that is broader than its marketing; Nexo and YouHodler remain account- or form-dependent.

Loan research workbench

Turn BTC loan quotes into a defensible shortlist.

Enter collateral, target cash, and location. Pledge ranks lenders that match your scenario by cost, custody model, fees, and liquidation risk before you visit a provider.

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15 lenders · Last checked April 30, 2026

APRCustodyLiquidation

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Ranking current loan options…

Last checked

April 30, 2026

Compare uses current lender records, then reranks by your loan scenario.

Coverage

15 tracked lenders

APR, custody model, LTV, minimums, and safety score stay visible.

Start here

Scenario setup

Enter collateral and cash target before reading provider pages.

How we review

Loan checks

Open the scoring rules before relying on a close shortlist.

Boundary

Not advice

Pledge supports decisions; it does not recommend a provider for everyone.

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Loan research workbench

Turn BTC loan quotes into a defensible shortlist.

Enter collateral, target cash, and location. Pledge ranks lenders that match your scenario by cost, custody model, fees, and liquidation risk before you visit a provider.

Rate status

15 lenders · Last checked April 30, 2026

APRCustodyLiquidation

Set terms

Collateral, target loan, jurisdiction.

Rank market

APR, LTV, custody, fees, risk.

Research boundary

Affiliate relationships do not buy ranking position or safety score.

Research desk status

15 platforms tracked · Last checked April 30, 2026

Start with ranked offers for your scenario, then switch to side by side once the shortlist is clear.

Scenario terminal

Adjust the loan terms before reading the lender table.

Lead with the two numbers that matter most. We rank the eligible market first, then surface deeper analysis once you have a shortlist.

BTC collateralSource checkedCollateral-first approval15 platforms trackedRanked table first

Collateral Type

Collateral Value (USD)

Amount to Borrow (USD)

Country

State

How this ranking is checkedMethodology snapshot

Ranking blends the visible rate, known fees, custody model, max LTV, funding constraints, and current lender records.

Source checkFee reviewLTV stressAffiliate neutral

Advanced filters

Start with the ranked market first. Only narrow the results here if term length, custody model, or ranking priority need to match your exact situation.

Default filters scan the U.S. market, 12-month terms, and any custody model, ranked by lowest borrowing cost.

Market reference: Loading the BTC benchmark...

This is just a benchmark. The ranked table will use your exact inputs once you run the comparison.

Stress-test your position

Collateral Value ($)

Loan Amount ($)

LTV (%)

Liquidation Threshold (%)

BTC Price ($)

Daily Volatility (%)

Enter collateral value and loan amount to see risk analysis

Rates are estimates based on publicly available data reviewed on the dates shown. Final terms may differ — confirm directly with the lender. Cost estimates include known fees but exclude potential late fees, liquidation penalties, or rate changes on variable-rate products.

Ranking current loan options…

Last checked

April 30, 2026

Compare uses current lender records, then reranks by your loan scenario.

Coverage

15 tracked lenders

APR, custody model, LTV, minimums, and safety score stay visible.

Start here

Scenario setup

Enter collateral and cash target before reading provider pages.

How we review

Loan checks

Open the scoring rules before relying on a close shortlist.

Boundary

Not advice

Pledge supports decisions; it does not recommend a provider for everyone.

Rate change alerts

Get an email when a reviewed platform changes its APR. No spam — just rate movements.

Adjacent decision paths

Not every Bitcoin finance decision ends with a loan

If compare is making you hesitate, the next move is usually Digital Money reviews or a closer read of how we score lenders. Those paths solve different questions on purpose.

Different product

Explore Digital Money

Move into Digital Money reviews when the question is how to hold or park dollar value in a Bitcoin-linked system, not how to borrow against BTC.

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Review rules

See how loans are reviewed

Open the loan review rules when two lenders are close and you want the scoring criteria, freshness rules, and disclosure boundaries before acting.

See review rules

Compare Other Bitcoin Products

Wallets

Keys, recovery, hardware support

ETFs

Expense ratio, AUM, liquidity

Custodians

Insurance, security, regulation

Digital Money

Backing, exit path, yield treatment

Compare two lenders head-to-head

Turn BTC loan quotes into a defensible shortlist.

Verification

Compare Other Bitcoin Products

Wallets

ETFs

Custodians

Digital Money

Turn BTC loan quotes into a defensible shortlist.

Adjust the loan terms before reading the lender table.

Verification

Rate change alerts

Not every Bitcoin finance decision ends with a loan

Explore Digital Money

See how loans are reviewed

Compare Other Bitcoin Products

Wallets

ETFs

Custodians

Digital Money

Adjust the loan terms before reading the lender table.

Rate change alerts

Not every Bitcoin finance decision ends with a loan

Explore Digital Money

See how loans are reviewed