How crypto‑backed loans work
Crypto loans let you borrow cash without selling your coins. You pledge Bitcoin (BTC) or another supported cryptocurrency as collateral; the platform then extends a percentage of that value (the loan‑to‑value or LTV) as USD, USDC or another stablecoin. Because lenders can liquidate the crypto if prices plunge, they can approve a crypto loan without a hard credit check.
Why not just sell BTC? A crypto‑backed loan lets long‑term holders avoid a taxable sale while still unlocking liquidity for bills, investing, or a down payment—so you stay exposed to potential Bitcoin upside.
Ranking methodology
To spotlight the best crypto loan platforms in 2025, we scored each provider on eight weighted factors:
Maximum LTV (20 %) – higher lets you unlock more cash per BTC.
APR & Fees (20 %) – true, all‑in borrowing cost.
Term Flexibility (10 %).
Custody & Rehypothecation Risk (15 %).
Speed to Fund (10 %).
Geographic Reach (10 %).
Track Record (10 %).
Transparency (5 %). Only retail‑friendly desks that serve U.S. or global borrowers made the cut.
Top Bitcoin & crypto loan platforms for 2025
#1 Figure — Best overall crypto loan platform
Max LTV: Up to 75 %
Interest rate: 8.91% (9.999% APR) @ 50% LTV
Lowest fixed in the industry at 50% LTV
Term: 12 months
Custody: Decentralized MPC wallet
Why we like it: Figure is the largest non bank HELOC lender in the US with over $16b in equity unlocked so they have big credibility, they only pull a soft credit check, the rates are the lowest in the industry at 50% LTV and they just launched MPC custody which is huge in a post FTX world as it prevents against single entity custody failure.
Apply for a crypto‑backed loan at Figure↗
#2 Ledn
Max LTV: 50 %
APR: 10.4% (12.4% APR) @ 50% LTV
Custody: BitGo
While Ledn also offers a 12 month loan term, their APR is quite high and also have a higher admin fee at 2% than Figure.
#3 Arch
Max LTV: 60 %
APR: 12.5% (14% APR) @ 50% LTV
Custody: Anchorage
Arch fills the gap between short and long terms but has the highest APR at 50% LTV.
How to choose the right BTC loan
Set your ideal LTV. Higher lets you borrow more but risks liquidation if BTC dumps.
Compare true APRs. Factor origination fees and loyalty‑token discounts.
Check custody policies. Platforms that don’t rehypothecate (Figure, Ledn) lower counter‑party risk.
Match term length to your needs. Short terms are cheaper but require refinancing.
Verify state or country eligibility. Some lenders geo‑block certain regions.
Risks of crypto lending
Margin calls / liquidation if BTC price falls below margin threshold.
Custody failure at the third‑party custodian.
Regulatory shifts that could restrict lending or raise costs.
Interest‑rate volatility on variable‑rate products.
Always maintain a safety buffer and read the lender’s liquidation policy.
FAQs about Bitcoin & crypto loans
Are crypto loans taxable?
In most jurisdictions, a loan is not a taxable event because you retain ownership of the collateral. Interest may be deductible—consult a tax pro.
How quickly can I get a BTC‑backed loan?
Platforms like Figure release cash same day, while others (Ledn) take up to 24 hours.
What happens if BTC price crashes?
If your LTV exceeds the liquidation threshold (often 80‑85 %), the lender will sell some or all of your collateral to cover the loan.
Can I use ETH or other crypto instead of Bitcoin?
Yes. Most crypto loan platforms accept ETH, SOL, LTC and stablecoins as collateral, though LTVs may differ.
Bottom line
For 2025, Figure delivers the strongest mix of high LTV, fast funding and transparent custody, making it the best Bitcoin loan platform for most borrowers. Whichever route you choose, monitor your LTV daily and keep your holdings safe.
