When cryptocurrency prices are low but you are not ready to sell, crypto-backed loans offer a practical solution. By pledging digital assets as collateral, users can obtain fiat currency or stablecoins without liquidating their holdings. Below is a comprehensive review of ten platforms that provide such services, highlighting their key features and conditions.
Leading Platforms for Crypto-Backed Loans
BlockFi, a wealth management platform for crypto investors, offers U.S. dollar loans backed by Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). The minimum loan amount is $5,000, with a typical loan-to-value (LTV) ratio of 50%. For example, to receive $10,000, a borrower must deposit approximately 3.53 BTC at current prices. BlockFi recently reported a stronger balance sheet and announced it will raise interest rates on BTC and ETH deposits starting April 1.
Salt Lending operates in multiple markets and accepts a dozen cryptocurrencies as collateral, including BTC, BCH, XRP, ETH, and LTC. Users can set LTV ratios between 30% and 70%, with repayment periods ranging from three to 12 months. Interest rates start at 5.95% APR. In December, trading platform Uphold partnered with Salt Lending to provide fiat and stablecoin loans to its users.
Silvergate Bank, a U.S.-based crypto-friendly financial institution, launched SEN Leverage in January, allowing customers to obtain loans collateralized by bitcoin. The product was developed in partnership with cryptocurrency exchange Bitstamp, targeting institutional clients seeking leverage.
Nexo serves cryptocurrency holders in over 200 jurisdictions, offering loans in more than 40 fiat currencies. It recently introduced loans backed by Bitcoin Cash (BCH). Nexo's loan rates start at 5.9% APR, and users can access instant credit lines after depositing crypto. Additionally, Nexo pays 8% interest on euro and stablecoin deposits.
YouHodler is an established player in the sector, lending euros, U.S. dollars, and Tether (USDT) against the top 12 cryptocurrencies. It pays up to 12% APR on deposits in six cryptocurrencies, including BTC, BNB, and all major stablecoins. YouHodler claims the highest LTV ratio in the industry—up to 90%—with a minimum loan amount of just $100.
Unchained Capital accepts only Bitcoin with an LTV range of 35% to 50%, catering to long-term holders seeking professional custody. Hodl Finance uses BTC, ETH, and XRP as collateral at a 50% LTV. Coin Loan accepts six cryptocurrencies with LTV up to 70%. Lendabit facilitates peer-to-peer lending against BTC and ETH.
Ecosystem Partnerships Expand Services
Collaboration within the blockchain space continues to extend crypto credit services. For instance, a partnership with Cred enables Bitcoin.com Wallet users to earn up to 10% interest on their BTC and BCH held on the platform, while also offering borrowing at sub-10% APR. Binance's lending facility recently added BCH, ETH, and EOS to its flexible deposit options, which already supported BTC, BNB, and stablecoins BUSD and USDT.
These platforms allow crypto holders to access liquidity without selling their assets, a strategy particularly appealing during bear markets. However, users should be aware of risks such as margin calls due to price volatility and the regulatory status of each platform. It is advisable to carefully compare terms including interest rates, LTV ratios, repayment periods, and supported collateral before committing.