TL;DR
- SALT Lending is seeing an increase in customers using Bitcoin as collateral to finance education, personal expenses, and business needs.
- Ledn has issued more than $11 billion in BTC-backed loans and expects to expand its lending activity over the coming years.
- Bitcoin lending platforms are seeking to offer fixed interest rates and longer repayment terms to make their products more similar to traditional credit.
Bitcoin (BTC)-backed loans are gaining traction as an alternative financing option for everyday expenses, education, and business needs. According to SALT Lending and Ledn, more people are using their cryptocurrencies as collateral to access liquidity without selling their assets.
Hunter Albright, chief revenue officer at SALT Lending, explained that borrowers are turning to these loans to cover emergencies, pay college tuition, finance major trips, or supplement their income during slower periods.
SALT, which began offering Bitcoin-backed loans in 2016, initially served BTC miners. Today, it also receives applications from institutions and cryptocurrency holders belonging to Generation X and the baby boomer generation.
Your Bitcoin can help open the door to real estate — without selling it.
BTC-backed loans can provide liquidity for cash offers, down payments, land, renovations, and more while keeping your Bitcoin strategy intact.Read the full blog in the comments below.#Bitcoin #RealEstate… pic.twitter.com/T2fyPQ5rAr
— SALT (@SALTLending) October 7, 2026
Ledn Surpasses $11 Billion in Bitcoin-Backed Loans
Ledn, founded in 2018, has issued more than $11 billion in loans since launching its operations. The company projects that this figure could reach $1 trillion over the coming years.
Adam Reeds, co-founder and CEO of Ledn, said its customers include traditional investors, entrepreneurs seeking working capital, and financial institutions.
Wealth management clients take out larger loans to finance investments, real estate, businesses, and their children’s education. Retail borrowers, meanwhile, typically request smaller amounts to cover expenses when their income falls short.
The main motivation is to access liquidity without selling Bitcoin while maintaining exposure to potential price increases.
Reeds explained that many customers renew their loans precisely because they want to hold their BTC for the long term.
SALT Seeks to Offer Fixed Rates and Mortgage-Like Terms
SALT Lending is working to develop products with fixed interest rates and longer repayment periods, similar to traditional mortgages.
Albright explained that the goal is to provide greater predictability around borrowing costs, even when Bitcoin experiences substantial price fluctuations.
Coinbase also introduced fixed-rate BTC-backed loans through Morpho’s Midnight protocol. These products allow users to borrow USDC, with interest rates and repayment dates established from the outset.
The platform already offered variable-rate loans on Morpho, with more than $1.4 billion in outstanding loans and approximately $3 billion in collateral.
Meanwhile, Ledn is considering expanding this model to other assets, particularly gold.
Reeds noted that loans backed by precious metals could allow more holders to access cash without selling their holdings, an option that has historically been more closely associated with large institutions.
