Best Bitcoin Loan Platforms in 2026: 11 Lenders Compared

Disclosure: Liquidium publishes this article and Liquidium is one of the platforms compared. We have tried to treat every provider the same way. Every figure comes from the provider's own website, docs or live protocol data, and the sources are listed at the end. Rates and limits change often, so check the provider before you borrow. This article is general information, not financial advice.

TL;DR

• Compares 11 Bitcoin loan platforms: the biggest differences are who controls your BTC, whether it’s wrapped, and what you can borrow.
• Liquidium offers native-BTC borrowing without a custodian or fixed repayment term; other options cater to bank payouts, large loans, or multisig custody.
• Don’t chase the lowest advertised rate. Compare total fees and liquidation rules—and borrow below the maximum LTV to leave room for price drops

All figures below were checked on 6 November 2026 unless a different date is shown.

Quick picks: which Bitcoin loan platform fits you

• Non-custodial borrowing against native BTC with no fixed term: Liquidium. You send real BTC and receive stablecoins, with no account needed for Simple Loans. (That's us, so weigh this pick accordingly.)
• Holding one of the keys yourself (businesses): Unchained. Its loans use collaborative multisig, but they are commercial-purpose only and start at $150,000.
• Large loans: Strike publishes rates down to 7.49% APR for $5–10M and sets no maximum. Arch lists 7.74% APR for $5–10M and from 7.25% APR above $10M, and Ledn charges 9.25% APR from $2M.
• Euro or other European fiat paid to your bank account: Firefish, a marketplace that holds collateral in a pre-signed 3-of-3 multisig escrow. Its EU entity is authorised under MiCA for the escrow and collateral services.
• No identity verification at the protocol level: Aave (wrapped BTC) and Liquidium Simple Loans (native BTC). Both still apply geographic and sanctions restrictions.
• Existing Coinbase customers in the US: Coinbase's Morpho-powered USDC loans.
• Avoiding price-triggered liquidation: Strike's "volatility-proof" loan, at a 2.95% rate premium.

How we chose and what matters

We included providers that offer BTC-backed loans today and publish enough terms to compare. We dropped Sovryn: its app shows "Sovryn is in maintenance mode," and its Zero borrowing fee floor was raised to 99% in 2023 to stop new borrowing. Chainflip launched native-BTC lending, but it publishes too few loan terms for the table. See Liquidium vs Chainflip for how the two designs differ.

The interest rate matters less than these four things:

1. Custody. Who can move your BTC while the loan is open? There are three models. A custodial lender holds it. In a multisig, keys are split between you, the lender and sometimes third parties. In a smart-contract protocol, code and threshold signatures control it. Our guide to custodial vs non-custodial Bitcoin loans covers the tradeoffs, and the Bitcoin loan technology comparison explains multisig, DLCs and threshold signatures.
2. Rehypothecation. Can your collateral be lent or pledged again? Several custodial lenders now say they don't lend it out, but some may still pass it to funding partners. Read the exact wording.
3. Liquidation mechanics. Find the LTV at which you get a warning, the LTV at which liquidation starts, whether it's partial or full, and whether there's a grace period. A higher threshold gives more room, but only if you understand how fast liquidation happens.
4. Total cost. Add origination, admin, platform and liquidation fees to the APR. A 1–2% upfront fee changes the cost of a short loan a lot.

Wrapped vs native BTC. Wrapped BTC (WBTC, cbBTC) is a token on another chain, backed by BTC that a custodian holds. If you borrow against it, you depend on that custodian as well as the lending protocol.

Bitcoin loan platforms compared (as of November 2026)

Variable rates were read on 6 November 2026: Liquidium's live pool data, Morpho's API for the Coinbase market, and Aave's API for the Ethereum Core market. They move with demand, so treat them as a snapshot. You can estimate a Liquidium position in the loan calculator.

Platform notes: pros and cons

Liquidium

Liquidium is a non-custodial lending protocol on the Internet Computer (ICP). You send native BTC to a deposit address and borrow stablecoins. With Simple Loans, you don't need an account or wallet connection. Inside the protocol, BTC is held as ckBTC, which ICP's own minter issues 1:1. That minter controls the real BTC with threshold signatures, so the key is split across a subnet's nodes and no Liquidium team member holds it. There is no third-party bridge or custodian in the path. As of 6 November 2026, BTC collateral has a 65% max LTV and a 74% liquidation threshold. USDC borrowing costs 4.51% and USDT 4.76%, variable, plus a 0.5% activation fee added to the debt.

• Pros: Native BTC goes in and comes out. There's no fixed term and you can repay any time. Partial liquidation repays up to 50% of the debt at a time (up to 100% once Health Factor reaches 0.975 or below). Live pool parameters are public. Trail of Bits reviewed the ICP canisters.
• Cons: There is no margin call or grace period: liquidation can start as soon as Health Factor drops below 1.0. Payouts are crypto only (stablecoins, ETH, BTC, ICP), with no direct bank transfer. A multisig controls upgrades and risk settings, and the lending canister code is not open source. You also depend on ICP's chain-key infrastructure.

Learn more: borrow against Bitcoin on Liquidium, Bitcoin-backed loans, and how we compare with Aave, Compound and Morpho.

Ledn

Ledn is a long-running custodial lender. It now offers only "Custodied Loans" (its Standard loans ended on 1 July 2025). It publishes a tiered rate table from 11.49% APR under $250,000 down to 9.25% from $2M. Loans run 12 months with no monthly payments.

• Pros: Published rates and LTV triggers: notices at 70% and 75%, liquidation at 80%. Ledn says neither it nor its partners may lend out your collateral to generate interest. Payout can be USD or stablecoins.
• Cons: Collateral may be re-posted to an institutional funding partner or a Ledn-sponsored financing vehicle. Non-US/Canada borrowers pay a 2% admin fee. From 1 January 2027, accrued interest is due at maturity, and Ledn may sell BTC to cover it.

See our full Liquidium vs Ledn comparison.

Nexo

Nexo offers an open-ended credit line against BTC and 30+ other assets. It pays out in fiat or stablecoins, and loans range from $50 to $2M. Nexo returned to the US in February 2026 with Bakkt providing custody.

• Pros: No fixed term or minimum installments. Low headline starting rates. Bank payouts in USD, EUR or GBP.
• Cons: The best rates depend on jurisdiction and loyalty tier, and Nexo doesn't publish a full rate table. For crypto-only collateral, Nexo's help centre lists warnings at 71.4%, 74.1% and 76.9% LTV and liquidation from 83.33%. We found no published statement on rehypothecation. Custody is held by Nexo or its partner.

See our full Liquidium vs Nexo comparison.

Unchained

Unchained lends against BTC held in a multisig vault. You, Unchained and Fortis Bank each hold a key, and Unchained says no party acting alone can move or rehypothecate the collateral. Loans are for commercial purposes, starting at $150,000 for businesses and $500,000 for individuals and trusts.

• Pros: You hold a key and can verify the collateral on-chain. A margin call gives 24 hours to cure.
• Cons: High minimums, and a 14.18% APR example (dated November 2025) that includes a 2% origination fee. Several US states are excluded. Payments are monthly and interest-only.

Strike

Strike offers 12-month term loans and, since March 2026, a variable-rate line of credit. It charges no origination, early repayment, late or liquidation fees.

• Pros: Tiered rates down to 7.49% APR for large loans, with no published maximum. Margin call at 70% with 72 hours to cure, and partial (not full) liquidation at 85%. The optional volatility-proof loan isn't liquidated because of price moves.
• Cons: Custodial, and collateral may be transferred to capital providers. The usual minimum is $10,000. Not available in every US state.

Coinbase (powered by Morpho)

Coinbase converts your BTC 1:1 into cbBTC and deposits it into a Morpho lending market on Base, then lends you USDC. Coinbase calls itself an interface and says it cannot stop a liquidation on Morpho.

• Pros: Simple for existing customers. Variable-rate loans have no repayment schedule. Coinbase pays the gas.
• Cons: Collateral is wrapped BTC, and Coinbase custodies the BTC behind it. There's a 1–2% processing fee, and a platform fee may apply on top. You can only borrow USDC. Coinbase doesn't publish its maximum starting LTV or a fixed loan limit, which it says varies.

Firefish

Firefish is a peer-to-peer marketplace for fixed-term loans from 3 to 24 months. Collateral sits in a 3-of-3 multisig with two oracles and a one-time borrower key, and every loan outcome is a pre-signed transaction. Firefish currently operates both the price oracle and the payment oracle. Firefish Europe s.r.o. is authorised under MiCA for specified crypto-asset services: the collateral escrow, liquidation exchange and related transfers. Its other services fall outside that authorisation.

• Pros: Pays out fiat to European bank accounts. Collateral sits in pre-signed escrow rather than with a custodian, and it isn't reused. The borrower gets a recovery transaction.
• Cons: KYC is required, with tiered limits. The 1.5% p.a. origination fee comes out of your BTC. Matching with a lender can take time. You repay in full at maturity.

Arch

Arch is a US-focused custodial lender. Anchorage Digital holds collateral in segregated custody with no rehypothecation.

• Pros: Partial liquidation and a 24-hour window to cure a margin call. Clear rate tiers. Businesses can borrow internationally.
• Cons: 10.49% APR for loans under $250,000. Individuals are limited to eligible US states. Minimum loan $5,000.

Aave

Aave is a permissionless lending protocol. On its Ethereum Core v3 market, WBTC and cbBTC can be borrowed against up to 81% LTV, with an 85% liquidation threshold. Aave v4 launched on Ethereum in March 2026. Its live BTC parameters weren't in the public API we used, so this article uses v3 data.

• Pros: No account or KYC at protocol level. You can borrow many assets at variable rates with no origination fee.
• Cons: It accepts wrapped BTC only, so you rely on the token's custodian. You manage your own wallet, gas and liquidation risk. See Liquidium vs Aave.

Lava and Debifi

Two more native-BTC options launched or grew by 2026. Lava offers a custodial Bitcoin line of credit at 6.50%–8.50% plus a 2% annual capital charge. It has no required payments, but liquidation is all-or-nothing and its liquidation LTV isn't published. Debifi is a multisig marketplace where the borrower holds one of four keys. Lenders set the rates and the starting LTV (30–70%), and KYC depends on the offer.

How to choose a Bitcoin-backed loan provider

Start with the question you can't compromise on.

• If you want nobody but the protocol rules controlling your BTC, look at non-custodial or multisig options. Then check who can upgrade the code or hold the other keys.
• If you need dollars or euros in a bank account, a custodial lender or Firefish saves you a conversion step.
• If you're borrowing for months with no fixed plan, open-ended loans (Liquidium, Nexo, Coinbase, Aave, Strike's line of credit, Lava) avoid maturity dates.
• Model a price drop either way. At a 50% LTV, BTC can fall about 38% before reaching an 80% liquidation level. At 65%, it can fall about 12% before reaching 74%. Borrowing below the maximum matters more than which platform you choose.

For a walkthrough of the process, read how to borrow against Bitcoin.

Try Liquidium

If you want to borrow stablecoins against native BTC without handing it to a custodian, start a Bitcoin-backed loan on Liquidium. Run the numbers in the calculator first.

FAQ's

What is the best platform to borrow against Bitcoin?

It depends on custody and payout. Liquidium, Unchained and Debifi keep collateral out of a single company's sole control; Firefish uses pre-signed escrow with Firefish-run oracles. Strike, Ledn, Arch and Nexo pay out fiat through a custodian. Coinbase and Aave use wrapped BTC. Compare the liquidation LTV and total fees before you compare rates.

Can I borrow against Bitcoin without KYC?

Yes, on some protocols. Aave requires no KYC at the protocol level but uses wrapped BTC. Liquidium Simple Loans use native BTC without an account. Both still apply sanctions and geographic restrictions. Ledn, Nexo, Strike, Arch, Coinbase and Firefish require identity verification or account terms.

What LTV do Bitcoin loan platforms allow?

As of November 2026, starting LTVs range from about 50% (Ledn, Nexo, Strike, Firefish, Unchained) to 60% (Arch, Lava), 65% (Liquidium) and 81% (Aave with WBTC/cbBTC). Liquidation levels range from 74% to 95%. The gap between your LTV and the liquidation level matters more than the maximum.

Do Bitcoin lenders rehypothecate collateral?

Practices differ. Arch says it doesn't rehypothecate. Ledn says your collateral is never lent out, though it may be re-posted to funding partners. Strike may transfer collateral to capital providers. Multisig and smart-contract platforms rely on keys or code instead. We found no published statement from Nexo.

What happens if Bitcoin's price drops during my loan?

Your LTV rises. Most lenders send warnings, and some give a cure window: Strike gives 72 hours and Arch and Unchained 24 hours. Liquidium and Aave have no grace period, so liquidation can start once you cross the threshold. Adding collateral or repaying lowers your LTV.

Is borrowing against Bitcoin better than selling it?

Borrowing keeps your BTC exposure, but it adds interest and liquidation risk. Tax treatment depends on your jurisdiction. Read borrowing vs selling Bitcoin for a worked comparison.

Sources (accessed 6 November 2026)

• Liquidium: live pool data, FAQ (LTV, fees), Simple Loans, governance and risk, Terms of Use
• Ledn: Bitcoin-backed loans, Custodied Loans, Dollar Loans, eligibility
• Nexo: Borrow (US), Borrow (global), Bitcoin loans, Terms, US return, Loan repayments and LTV levels
• Unchained: Loans, Pricing, Margin calls, State eligibility
• Strike: Lending, Rates, Margin calls, Availability
• Coinbase: Borrow, Loan intro, Fees, Collateral, cbBTC, Morpho API, Loan intro, Fees, Collateral
• Firefish: Home, Protocol, Borrowing FAQ, Collateral FAQ, Fiat countries
• Arch: Home, Rates, LTV and liquidation, Eligibility
• Aave: Aave v3 API, Terms, Aave v4 launch
• Lava: Bitcoin line of credit, Rates, Capital charge, Liquidations
• Debifi: Home, FAQ
• Sovryn (excluded): App status, SIP-0066 and SIPs
• Chainflip: Lending