Borrow Against SOL, XRP, BTC, ETH, MATIC and BNB

Most borrowers who evaluate a Bitcoin-backed loan focus on one question: how much can they borrow? Strategic borrowers focus on a different question: how much volatility can the loan structure survive? The answer to the second question is almost entirely determined by one variable — the loan-to-value (LTV) ratio chosen at origination. Entry LTV does not determine the interest rate. It does not determine the loan term. It determines whether the position survives a 30%, 40%, or 60% BTC correction with collateral intact — or gets automatically liquidated before the borrower can respond. BetterLending’s own borrower data reflects this clearly: the platform’s average client voluntarily chooses 47% LTV — well below the 85% origination ceiling — specifically because a lower LTV provides a meaningful buffer against market volatility. That behaviour is not conservative risk aversion. It is structurally informed decision-making from borrowers who understan...

BetterLending Research Desk  ·  Collateral Custody & Bitcoin Loan Mechanics  ·  Updated May 2026 Direct answer: When a borrower takes a Bitcoin-backed loan, the BTC is transferred to a platform-controlled or jointly controlled wallet address — removing the borrower's direct on-chain control for the duration of the loan. Who controls it, how it is stored, whether it can be reused, and under what conditions it can be liquidated are determined entirely by the platform's custody model. These structural decisions — not the interest rate — determine whether the Bitcoin is safe during a market correction and whether it is returned in full when the loan is repaid. Introduction Most Bitcoin holders who explore crypto-backed borrowing understand the concept — pledge BTC, receive liquidity, repay and get the BTC back — but very few have mapped what actually happens to the collateral after it leaves their wallet: which e...

Most Bitcoin holders understand the concept of borrowing against BTC without selling it. Fewer understand what actually happens structurally after the deposit is made — who controls the keys, how LTV changes in real time, exactly what triggers a margin call, and under what conditions collateral is lost even when the borrower’s loan is performing correctly. Those structural details are where the real risk lives, and they determine whether a Bitcoin-backed loan is a powerful liquidity tool or a mechanism for losing the position it was meant to protect. What Is a Bitcoin-Backed Loan? A Bitcoin-backed loan is a secured credit facility in which the borrower deposits BTC as collateral in exchange for fiat or stablecoins. The borrower retains legal ownership of the Bitcoin throughout the loan term — no sale occurs, no market exposure is surrendered, and no taxable disposal event is triggered at origination. The lender holds the collateral in custody and releases it ...