Every Bitcoin Loan Rate Compared
You are paying 10x too much to borrow against your Bitcoin. If your Bitcoin loan APR is above 5%, you're paying for someone else's balance sheet. Every major BTC-backed lender is compared by APR, LTV, custody, and why 1% reflects the real cost of the loan.
The Bitcoin lending market has a pricing problem.
Borrowing against Bitcoin should be priced against Bitcoin. Instead, borrowers are paying 8–20% APR for BTC-backed loans while taking on custody risk, rehypothecation risk, variable-rate risk, and balance-sheet lender risk. These costs are not normal. They are artifacts of a credit model built around intermediaries.
Bitcoin-backed lending should work differently.
Here's every major platform that lets you borrow stablecoins or USD against Bitcoin, what they charge, and how they use your collateral.
| Provider | APR | Rate Type | LTV | Rehypoth. | Custody | KYC | Term |
|---|---|---|---|---|---|---|---|
| Mezo | 1% | Fixed | 90% | No | Self-custody / Qualified* | No | Flexible |
| USDaf | 5–25% | Fixed | 70% | No | Self-custody | No | Flexible |
| Libre | 3–20% | Fixed | 50% | No | Self-custody | No | Flexible |
| Binance | 4% | Fixed | 60% | Yes | Custodial | Yes | Flexible |
| Aave V3 | 6.1% | Variable | 75% | No | Self-custody | No | Flexible |
| Compound V3 | ~4–7% | Variable | 85% | No | Self-custody | No | Flexible |
| Firefish | 6.5–16.5% | Fixed | 60% | No | Self-custody | Yes | 1–12 mo |
| Coinbase | 8.7% | Variable | 40% | No | Custodial | Yes | 3–24 mo |
| SALT | 8.95–14.45% | Fixed | 60% | Yes | Qualified | Yes | 12 mo |
| Yala | 9% | Fixed | 65% | No | Self-custody | No | Flexible |
| Sky/MakerDAO | 9–9.75% | Fixed | 66% | No | Self-custody | No | Flexible |
| Strike | 10.5–14% | Fixed | 50% | No | Custodial | Yes | 1–24 mo |
| Lava | 11.99% | Fixed | 50% | No | Custodial | No | 1–12 mo |
| Arch | 12.5% | Fixed | 50% | No | Qualified | Yes | 1–24 mo |
| Ledn | 12.4% | Fixed | 50% | Limited | Qualified | Yes | 12 mo |
| Lendstat | 12.5–26.5% | Fixed | 70% | No | Self-custody | No | 1–6 mo |
| HODL LEND | 13.5–23.5% | Variable | 60% | No | Self-custody | No | Flexible |
| Debifi | 14.15–21.5% | Fixed | 50% | No | Custodial | No | 1–12 mo |
| Unchained | 15–20% | Fixed | 40% | No | Custodial | Yes | 12 mo |
| SOVRYN DLLR | 15.73% | Fixed | 50% | No | Self-custody | No | 1–12 mo |
| Coin Rabbit | 17.4–19.4% | Variable | 50% | Yes | Custodial | Yes | 12 mo |
| Nexo | 18.9% | Variable | 60% | Limited | Qualified | Yes | 12 mo |
| Liquidium | P2P | Variable | N/A | No | Custodial | No | Flexible |
| Galaxy Digital | Bespoke | — | <65% avg | Undisclosed | Qualified | Yes | Custom |
*Qualified refers to institutional qualified custody availability.
Rates sourced from bitcoinlendingrates.org.
Why Bitcoin-Backed Loan Rates Range From 10% to 20% APR
Bitcoin exists because money should not depend on the discretion of a printer.
In the fiat credit system, the cheapest dollars go first to the institutions closest to new money creation. Large banks, primary dealers, and balance-sheet lenders borrow near the source, then pass credit outward at a spread. The further a borrower sits from that source, the more expensive the dollar becomes. Bitcoin-backed credit should not inherit that hierarchy. The borrower already brings pristine collateral.
Borrowing against BTC should be priced against BTC.
As the above market data indicates, rates can exceed 10% while others can be as low as 1%. This spread reflects the institution sitting in the middle rather than Bitcoin’s risk profile. The underlying mechanics of borrowing against BTC do not necessitate high overhead costs. The reality of this process should reflect a 1% cost, not a 12% markup.
Centralized Finance (CeFi) lenders charge 12–20% because they are intermediaries. They borrow capital from investors, lend it at a markup, and often rehypothecate the borrower's BTC.
The rate the borrower sees reflects the lender’s cost of capital, operational overhead, profit margins, and investor yield expectations. In reality, these factors are entirely disconnected from the intrinsic cost of executing a Bitcoin-backed loan.
This dynamic is evident when comparing custodial implementations. Arch utilizes Anchorage Digital and charges a 12.5% rate. Mezo utilizes the exact same custodian for its institutional clients but charges only 1%. Mezo removes the lender's balance sheet from the center of the transaction. It issues dollar liquidity directly against BTC collateral.
| Provider | APR | Max LTV | Annual Cost |
|---|---|---|---|
| Unchained | 15–20% | 40% | $75,000–$100,000 |
| Arch | 12.5% | 50% | $62,500 |
| Mezo | 1% | 90% | $5,000 |
The $5,000 cost reflects the service's actual operational costs. As a Collateralized Debt Position (CDP) protocol, Mezo allows users to deposit BTC and mint stablecoins directly. This architecture eliminates intermediary borrowing, interest spreads, and collateral rehypothecation.
Sound Money Deserves Sound Rates
Bitcoin is sound money. Borrowing against Bitcoin should not inherit the cost structure of unsound money.
Institutions, funds, family offices, and long-term Bitcoin holders can borrow stablecoins against BTC at a fixed 1% rate, with up to 80% LTV and no collateral rehypothecation. For anyone evaluating Bitcoin-backed credit, the standard should be:
- Transparent collateral treatment (no hidden use of borrower assets).
- Stable rates.
- Efficient LTV.
Compare your current BTC-backed loan terms against Mezo’s 1% fixed rate and learn how to borrow against BTC without paying for an intermediary’s spread.
The materials are provided for informational and illustrative purposes only, and may not be complete. The materials contain forward-looking statements regarding future events, milestones, development, and utility. Such statements are based on current expectations and assumptions and are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied. The materials do not constitute, and should not be construed as, financial, investment, or legal advice. Digital assets are highly volatile assets with no guaranteed value, utility, or performance. Participation involves significant risk, including but not limited to price volatility, technological vulnerabilities, and liquidity risk, which may result in partial or total loss of funds. Participants must conduct their own due diligence on all relevant matters and seek advice from legal, tax, or financial advisors regarding the risks and consequences of participation. All actions taken are done so at your own risk.
The materials include references to various third-party tools and platforms. Mezo does not endorse any third-party tools and platforms. Users assume risks when interacting with these third-party smart contracts and services.
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