pledgeBitcoin-Backed Loans in New York: What's Available in 2026
9 min read
New York is one of the hardest states in the US for Bitcoin-backed lending. Between the BitLicense requirement, aggressive DFS oversight, and high compliance costs, most major platforms have steered clear of the Empire State.
That doesn't mean you're out of options. In our current dataset, 4 centralized lenders still serve New York (Ledn, Unchained, Figure, and Arch Lending), while 3 DeFi routes (Lava, Aave, and Maker (Sky)) remain accessible without the same CeFi licensing model. This guide focuses on the borrower paths NY readers ask about most: Unchained, Figure, Arch Lending, and Lava, with common CeFi exclusions like Nexo, YouHodler, Strike, and SALT Lending called out where they matter.
The useful job of this page is not to turn a state-availability problem into a generic comparison flow. It is to help you understand whether the real blocker is eligibility, custody model, regulatory friction, or product structure before you narrow the field.
The New York Problem
Why New York is different
New York's Department of Financial Services (DFS) requires crypto companies to obtain a BitLicense before serving NY residents. The application process is expensive, time-consuming, and has rejected several high-profile applicants. Many platforms simply chose not to operate there rather than deal with the regulatory burden.
The BitLicense framework, established by NYDFS in 2015, imposes strict requirements on crypto businesses:
- High compliance costs: Obtaining and maintaining a BitLicense involves substantial legal fees, capital requirements, and ongoing reporting obligations.
- DFS examination authority: Regulated entities are subject to DFS cybersecurity audits and regular examinations.
- Rejected applicants: Companies like Binance and Kraken have faced regulatory action in New York. Several smaller platforms have had BitLicense applications denied.
- Bank-like standards: NY applies banking-level regulation to crypto firms, including capital reserve requirements and consumer protection standards.
The result: many lenders that operate freely in 48 other states simply don't serve New York. The platforms that have obtained their BitLicense often have different product terms, higher rates, or stricter requirements than their out-of-state offerings.
What's Available in NY Right Now
This table focuses on the borrower paths we compare most often for NY readers: Unchained, Figure, Arch Lending, and Lava, plus Nexo as a common CeFi exclusion benchmark.
| Platform | Available in NY | Max LTV | APR Range | Custody Model |
|---|---|---|---|---|
| Unchained | Yes | 50% | 14.18%* | Multi-sig (2-of-3) |
| Figure | Yes | 50% | 8.91% / 9.999% APR | MPC (decentralized) |
| Lava | Yes | 50% | 7.5% | Custody unresolved |
| Arch Lending | Yes | 60% | 7.25–10.49% | Custodial (Anchorage) |
| Nexo | No | — | — | Excluded (NY and RI) |
*Unchained's public pricing pages currently disagree on the headline APR (pricing page vs. loans-calculator estimate), so Pledge treats the rate as conflicting — confirm a live quote before applying. Figure's 8.91% is the base interest rate; the 9.999% figure is the effective APR at 50% LTV including the 1% origination fee. Lava's rate is fixed interest only and excludes its separate 2% annual capital charge.
Unchained — Best for custody-conscious borrowers
Unchained is the only tracked New York-available collaborative multi-sig custody option in our current dataset. You hold 2 of 3 keys to your vault — Unchained holds one, and you hold two. This means you can never be locked out, even if the platform fails. NMLS licensed (ID: 2656661), explicit no-credit-check policy, and 100% collateral isolation with no rehypothecation. Minimum loan: $150K, plus a 2% origination fee and a $250/year vault fee. Unchained's public pricing pages currently disagree on the headline rate (14.18% on one page versus a higher loans-calculator estimate), so confirm a live quote before applying.
Safety Score: 9.0/10 — Highest in our tracked dataset. No excluded states in our tracked US dataset, so New York is served.
Figure — Best for competitive rates
Figure offers a 12-month BTC-only product at 8.91% base rate (9.999% effective APR). They use MPC (multi-party computation) custody, which distributes key management across multiple parties without any single point of control. The product includes a 1% origination fee, optional Liquidation Protection, and a 50% max LTV. In our current dataset, Figure's US rollout excludes 10 states: DC, ID, IL, KY, MD, MS, SD, TX, VT, and VA.
Safety Score: 7.1/10 — Competitive rates. The current public page says collateral will never be rehypothecated, but there is no published reserve reporting and custody is MPC-custodial (you do not hold the keys).
Lava — Best for DeFi-native users
Lava markets itself as self-custody, but reporting (Bitcoin Magazine, Nov 2025) indicates it moved to custodial cold storage — Pledge cannot reconcile the two, so its custody model is unresolved. No KYC required. Interest starts at 7.5% (6.5% above a $100K balance, 7.5% below), plus a separate 2% annual capital charge — the lowest published BTC rate we track, though the capital charge raises the true cost. As a DeFi-origin protocol, NY residents have been able to access it without the platform needing a BitLicense, but the custody uncertainty is a material risk. For genuinely non-custodial access, Aave and Maker are clearer. Backed by Founders Fund and Khosla Ventures (leads), plus Susquehanna.
Safety Score: 3.4/10 — Custody is unresolved (reportedly custodial as of Nov 2025), so counterparty risk cannot be ruled out; smart-contract/protocol risk also applies.
Arch Lending — Best for higher LTV needs
Among the centralized and BTC-first options highlighted in this guide, Arch Lending offers the highest tracked LTV at 60%. Rates run a published 7.25–10.49% APR ladder by loan size (from 7.25% at the $5M+ tier, with a typical sub-$250K loan at 10.49% APR), plus a tiered 0.49–1.49% origination fee. Custody via Anchorage Digital (federally chartered bank). No rehypothecation and a bankruptcy-remote structure, though Arch does not publish proof of reserves. Line-of-credit flexibility (draw and repay as needed). Newer platform (founded 2022) with shorter track record.
Safety Score: 7.0/10 — Strong fundamentals. 4-year track record.
How New York Borrowers Can Apply
The application process for NY residents is similar to other states, with a few specific considerations:
- Verify platform availability. Confirm the platform serves New York before proceeding. Use our comparison table above or check the platform's restricted states list.
- Complete KYC/AML verification. All regulated platforms require identity verification. NY residents may face additional scrutiny or documentation requests. Be prepared with:
- Government-issued photo ID
- Proof of NY address (utility bill, bank statement)
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Source of funds documentation for larger loans
- Lock BTC as collateral. Transfer your Bitcoin to the platform (or lock it in a smart contract). Confirm the custody model — multi-sig (Unchained), MPC (Figure), custodial (Arch), or smart-contract based (Lava) — and understand what that means for your control over the funds.
- Review and sign the loan agreement. NY-regulated platforms will provide disclosures required by DFS. Read the full fee schedule, not just the headline APR. Watch for origination fees, vault fees, wire fees, and early repayment terms.
- Receive your loan. Funding times vary: Figure's tracked BTC product can often fund same day, Lava settles on-chain in seconds, Arch usually takes 1–3 days, and Unchained typically takes 3–5 business days due to the multi-sig setup process.
- Service your loan. Make interest payments on schedule. Monitor your LTV ratio — if BTC drops significantly, you may receive a margin call and need to add collateral.
NY-specific note:State availability changes faster than most long-form guides. Treat this page as a starting point, then verify the lender's current NY status directly before moving collateral or completing KYC.
If You're Outside NY But Want Similar Terms
If you live outside New York, you have access to the same platforms plus a few additional options. One common comparison is Ledn vs. Unchained:
→ Ledn vs. Unchained: Which Bitcoin Loan is Better?
Compare rates, custody models, safety scores, and borrower profiles for the two most popular platforms.
Additionally, borrowers outside NY sometimes explore offshore CeFi platforms (e.g., YouHodler, Nexo in eligible jurisdictions) or DeFi protocols for different terms. Our CeFi vs. DeFi guide covers the tradeoffs in detail.
→ CeFi vs. DeFi Lending: What's the Difference?
Understand counterparty risk, custody, rates, and regulation across platform types.
What to Watch For in NY
New York's crypto lending landscape is evolving. Here are the key trends to monitor:
BitLicense pipeline
Several platforms are reportedly in the DFS approval process. If approved, NY borrowers could see more competition and potentially better rates. Watch for announcements from platforms currently excluded.
DFS enforcement actions
NY regulators have been aggressive in pursuing unregistered crypto activity. Platforms serving NY residents without proper licensing face potential action, which could affect borrower access. Verify any platform's DFS status before signing up.
DeFi and non-custodial alternatives
As regulatory pressure on CeFi platforms grows, non-custodial (DeFi) options like Aave and Maker may become increasingly popular among NY residents who want to avoid the BitLicense issue entirely. The tradeoff is smart contract risk instead of counterparty risk.
Federal crypto regulation
If the federal government establishes a clear crypto regulatory framework, it could override state-by-state requirements like the BitLicense. This would be a significant positive for NY borrowers, potentially opening up platforms that currently don't serve the state.
Keep the next step in the research flow
Use this guide to confirm which borrower path is actually open to you first. Then move into requirements, custody, or CeFi-versus-DeFi research depending on whether the open question is compliance friction, collateral control, or protocol risk.
New York research follow-ups
Continue reading:
This guide is for informational purposes only and does not constitute financial advice. Cryptocurrency lending carries significant risk including the potential loss of all collateral. Availability of platforms in New York may change. Always verify current terms and regulatory status directly with the lender before committing funds.