10 Best Bitcoin (BTC) Backed Loan Providers

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In this guide, we explore the top platforms enabling users to borrow funds using Bitcoin (BTC) as collateral. Whether you prefer centralized finance (CeFi) services like Nexo and Ledn or decentralized (DeFi) options such as Aave and Compound, these providers offer liquidity without requiring you to sell your BTC holdings.

Why Choose a Bitcoin-Backed Loan?

Bitcoin-backed loans provide instant liquidity while allowing borrowers to retain ownership of their BTC. Key benefits include:


Top 10 Bitcoin Loan Providers

1. Nexo

A leading CeFi platform offering crypto-backed loans with instant credit lines and rates as low as 0% APR.

2. Abra

User-friendly platform focusing on retail investors.

3. Ledn

Transparent Bitcoin loans with 50% LTV and institutional-grade security.

4. Binance Loans

Integrated with Binance exchange, supporting 160+ borrowable assets.

5. Coinbase Loans

U.S.-based loans via Morpho DeFi on Base L2 blockchain.

6. Aave

Decentralized lending with variable rates and multi-chain support.

7. Compound

Algorithmic DeFi protocol for WBTC-backed loans.

8. MakerDAO

Mint DAI stablecoins using WBTC collateral (currently paused for new loans).

9. Curve Finance

Borrow crvUSD against Bitcoin-wrapped assets (e.g., dlcBTC).

10. Solend

Solana-based lending with low fees and fast transactions.


Comparison Table

| Platform | Type | LTV | Key Feature |
|-------------------|--------|--------|--------------------------------------|
| Nexo | CeFi | 50-70% | 0% APR for top-tier users |
| Aave | DeFi | 80% | Flash loans & multi-chain support |
| Ledn | CeFi | 50% | Transparent terms + BitGo custody |


FAQ

Q: What happens if my collateral value drops?

A: Platforms liquidate collateral if the LTV exceeds thresholds (e.g., 80% for Aave).

Q: Are DeFi loans riskier than CeFi?

A: DeFi lacks insurance but offers decentralization; CeFi provides custodial protection.

Q: Can I repay early without penalties?

A: Most providers (e.g., Binance) allow early repayment.


Final Thoughts

Choose a provider based on:

For secure loans with insured collateral, 👉 Nexo is a top pick. DeFi users may prefer Aave or Compound for transparency.

Note: Always assess risks like liquidation and platform security before borrowing.