Never sell your Bitcoin.Borrow against it.
Access institutional-grade capital without transferring custody to a centralized intermediary.
Why borrow on BTCBacked
A borrowing model designed to eliminate custody risk.
Borrowing fees
Simple, transparent, Bitcoin-based.
1.5% per year platform fee
Deposited into the escrow with your collateral and paid once, after you receive the full loan payout: 1.5% per year of the loan term.
5% liquidation fee, if applicable
5% of the original loan amount, charged only if a loan is liquidated: when LTV reaches 90%, or if the loan is unpaid at maturity.
How it works
A simple guide to borrowing against Bitcoin collateral.
Create or browse loan offers
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Create a borrowing request or browse loan offers.
Create a borrowing request with your preferred terms.
Alternatively, browse and accept an existing lender offer.
Match with a lender
+Secure loan
+Monitor & manage
+Repay & retrieve collateral
+Our partners
Frequently
Asked Questions
You pledge your Bitcoin as collateral and receive a stablecoin loan in return. Your Bitcoin stays in a 2-of-3 multisig escrow during the loan and is never rehypothecated. Once you repay in full, it is released to your refund address.
Selling means giving up your position and its future upside. Borrowing gives you liquidity now while you keep your Bitcoin, so if Bitcoin goes up, you still benefit. Because borrowing is not a sale, it typically does not trigger a taxable event, though this depends on your jurisdiction and is not tax advice.
Your Bitcoin sits in a 2-of-3 multisig wallet. You hold one key, the lender holds one, and BTCBacked holds one. Moving funds requires two signatures, so no one can act alone. Everything is verifiable on-chain at any time, and your Bitcoin is never rehypothecated.
LTV is what you owe, including interest for the full term, as a share of the current value of your Bitcoin collateral. For example, if you owe half of what your collateral is worth, your LTV is 50%. A lower LTV means more buffer against price drops. If LTV rises too high, a margin call or liquidation may be triggered.
BTCBacked monitors your LTV in real time. If it reaches 75%, 80% or 85%, you receive a warning prompting you to add collateral or repay part of the loan. If it reaches 90%, the loan is liquidated: the lender is paid first, up to what they are owed, then BTCBacked takes its 5% liquidation fee from what is left, and any remaining Bitcoin goes to your refund address. If you have not added one yet, it stays in the escrow until you do.
Borrowers pay a platform fee of 1.5% per year of the loan term, charged once, after confirming receipt of the loan. It is deposited into the escrow together with the collateral and paid from there. If a loan is liquidated, a liquidation fee of 5% of the original loan amount applies. Bitcoin network fees apply to escrow transactions.