Milestone: $1 Billion in Bitcoin-Backed Loan Originations
Unchained, a leader in bitcoin-native financial services, today announced it has surpassed $1 billion in bitcoin-backed loan originations. With over 4,000 loans issued over nine years, the company is setting a new standard for transparency and security in Bitcoin lending.
Co-founder and CEO Joe Kelly said: 'Hitting $1 billion in originations is a milestone, but the bigger story is how we got here: nine years, full transparency to our borrowers, and no smoke and mirrors. While others talk about trust, we offer proof. Clients hold a key, verify their collateral on-chain, and know their bitcoin is securely handled. That's how lending should work, and it's a proven approach serious bitcoin holders can rely on.'
Market Outlook and Transparent Lending Model
According to HFT Market Intelligence, bitcoin-backed lending is projected to grow over 430% by 2030. As interest in this type of lending grows, Unchained continues to follow a model that avoids rehypothecation, meaning client collateral is not reused or moved without permission.
Head of Lending Jon Melton stated: 'Bitcoin-backed lending is a fantastic business squarely aligned with the needs of long-term bitcoin holders. Our commitment to non-rehypothecation and transparency are invaluable to our clients who need to understand the risks of borrowing against bitcoin. When clients pledge their bitcoin, they need to trust their lender. Our product design and growing track record provide a sound basis for that trust.'
Technical Architecture and Rate Adjustment
Unchained uses a 2-of-3 multisignature vault structure that allows borrowers to retain one key and verify their collateral directly on-chain. This ensures client assets cannot be moved without consent.
Along with reaching the $1 billion milestone, Unchained has lowered its annual percentage rates (APRs) on loans. While specific rates weren't disclosed, the company stated the change aims to make borrowing more competitive without altering its custody approach. The company stated: 'As the market for bitcoin financial products expands, and scrutiny around custody and rehypothecation deepens, Unchained's transparent, client-empowered model remains the most secure and verifiable approach to bitcoin-backed credit.'