For cryptocurrency holders who are not ready to sell their digital assets during market downturns but need fiat cash to cover expenses, crypto-backed loans offer a practical solution. By using Bitcoin, Ethereum, or other altcoins as collateral, users can borrow dollars, euros, or stablecoins without giving up their positions. Below is an overview of 10 leading platforms, each with unique features, interest rates, and loan-to-value (LTV) ratios.
BlockFi: Established Player Raising Rates
BlockFi extends USD loans backed by BTC, ETH, and LTC, with a minimum loan amount of $5,000 and a standard 50% LTV. For instance, to receive $10,000, a borrower must deposit 3.53 BTC (based on current prices). The platform recently reported a strengthened balance sheet and plans to raise interest rates on BTC and ETH deposits starting April 1, signaling robust growth.
Salt Lending: Multi-Coin with Flexible Terms
Salt Lending accepts a dozen coins including BTC, BCH, XRP, ETH, and LTC. Users can customize LTV between 30% and 70% and repayment periods from 3 to 12 months, with starting APR of 5.95%. In December, Uphold partnered with Salt to offer fiat and stablecoin loans to its users.
Silvergate Bank + Bitstamp: Traditional Bank Enters Crypto Lending
U.S.-based crypto-friendly bank Silvergate Bank launched SEN Leverage in January 2020, allowing customers to borrow against Bitcoin with the participation of exchange Bitstamp. This marks a significant step in bridging traditional finance and crypto.
Cred & Bitcoin.com Wallet: Earn Interest or Borrow
Cred partners with Bitcoin.com Wallet to offer up to 10% annual interest on BTC and BCH deposits, while also providing sub-10% APR crypto-backed loans for borrowers.
Nexo: Global Coverage with Instant Credit Lines
Nexo serves users in over 200 jurisdictions, offering loans in 40+ fiat currencies at starting APR of 5.9%. In December, it added BCH as collateral. Depositors can earn 8% interest on euro and stablecoin holdings. Instant credit lines become available after depositing crypto.
Binance Lending: Flexible Deposit Expansion
Binance’s lending arm added BCH, ETH, and EOS to its flexible deposit options, which already included BTC, BNB, BUSD, and USDT. Users can lend out assets or borrow against them.
YouHodler: Industry-High LTV up to 90%
YouHodler claims the highest LTV ratio in the sector at up to 90%, with a minimum loan amount of just $100. It supports loans in euro, USD, and Tether against the top 12 cryptocurrencies. Deposit rates reach 12% APR for BTC, BNB, and major stablecoins.
Other Notable Platforms
Unchained Capital accepts only BTC with LTV of 35-50%; Hodl Finance uses BTC, ETH, and XRP at 50% LTV; Coin Loan accepts six cryptos with up to 70% LTV; Lendabit facilitates peer-to-peer loans against BTC and ETH. Each platform caters to different needs, but all require careful management of collateral ratios to avoid liquidation.