Unchained, Ledn, and Coinbase offer the most popular US Bitcoin-backed loans. Compare rates, LTV, custody structure, and risks to find the right Bitcoin loan for your situation.
You need cash but you don't want to sell your Bitcoin. Bitcoin-backed loans let you borrow against your BTC — no credit check, no income verification, just Bitcoin collateral.
Three platforms dominate the US market for Bitcoin-backed loans: Unchained, Ledn, and Coinbase. They have very different structures, rates, and risk profiles. Here's exactly how they compare.
| Unchained | Ledn | Coinbase | |
|---|---|---|---|
| LTV | Up to 50% | Up to 50% | Up to 60% |
| Interest Rate | ~12-14% APR | ~11.9% APR | ~8% APR |
| Minimum Loan | $10,000 | $5,000 | $100 |
| Maximum Loan | $2M+ | $2M | No stated limit |
| Custody | 2-of-3 multisig | Ledn holds | Coinbase holds |
| Rehypothecation | No | Yes (B2X) | No |
| Margin Call | ~35% BTC drop | ~35% BTC drop | LTV-based |
| Location | US (most states) | International + US | US (select states) |
| Setup Time | 1-2 days | Same day | Minutes |
Unchained is the gold standard for Bitcoin holders who don't want to give up control of their keys. Their loan structure uses 2-of-3 multisig — you hold one key, Unchained holds one key, and a third-party key agent (Unchained Collaborative Custody partner) holds the third.
You need 2-of-3 keys to move the Bitcoin. Unchained can't unilaterally seize your BTC without your cooperation or a court order. This is fundamentally different from custodial lenders.
Rates: Approximately 12-14% APR depending on loan size and term. Not the lowest rate, but you're paying for custody security.
Loan sizes: Minimum $10,000, no hard maximum — loans above $2M are common for larger holders.
LTV: Up to 50% loan-to-value. Borrow $50,000 against $100,000 in Bitcoin.
Margin calls: If Bitcoin drops to approximately 40% of the loan value (a ~60% price drop from collateral value), Unchained will contact you to add collateral or repay. Unlike custodial lenders, they cannot instantly liquidate without going through the multisig process.
Best for: Bitcoin holders with $50,000+ who prioritize custody security and don't trust third parties with their keys.
Pros:
Cons:
Ledn is a Canadian company with international operations and US access. Their rates are competitive and setup is faster than Unchained — but there's a critical structure difference.
Rates: ~11.9% APR. Slightly below Unchained.
Loan sizes: $5,000 minimum, up to $2M.
LTV: Up to 50%. Same as Unchained.
The B2X program: Ledn offers a "Bitcoin-Backed Bitcoin Loan" (B2X) where they lend out your Bitcoin collateral to institutional borrowers to generate yield — similar to how BlockFi operated before its collapse. This rehypothecation means if Ledn's counterparties default, your collateral could be at risk.
Standard loans: Ledn also offers standard loans without rehypothecation. Make sure to select the non-B2X option if custody security matters to you.
Proof of Reserves: Ledn publishes Proof of Reserves attestations from Armanino, a leading crypto accounting firm. This provides more transparency than most lenders.
Best for: International borrowers, or US borrowers who want lower rates than Unchained and are comfortable with a custodial structure.
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Coinbase offers Bitcoin-backed loans through their regulated exchange infrastructure. The headline advantage is the lowest rate — around 8% APR — and no minimum loan above $100.
Rates: ~8% APR variable. Significantly below both competitors.
Loan sizes: $100 minimum, no stated maximum. Practical maximum limited by your BTC holdings.
LTV: Up to 60% — higher than Unchained or Ledn. Borrow $60,000 against $100,000 in BTC.
Custody: Standard Coinbase custody. Coinbase holds your Bitcoin in the same infrastructure as their exchange. Your collateral is subject to the same risks as any Coinbase account.
Regulatory risk: Coinbase is a publicly traded US company (COIN), which provides regulatory certainty. However, as a securities-regulated entity, your BTC could theoretically be subject to regulatory actions affecting the broader exchange.
Availability: Available in select US states only — not all states have access.
Best for: Smaller borrowers who want low rates and trust Coinbase's institutional infrastructure.
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All three platforms share the same basic mechanic:
If Bitcoin's price drops significantly, you'll face a margin call — add more collateral or repay part of the loan. If you can't meet the margin call, the lender liquidates your collateral.
At 50% LTV, here's what it takes to trigger a margin call:
At 50% LTV, you have meaningful cushion against Bitcoin's volatility. A 30% BTC drop still keeps your LTV at ~71% — uncomfortable but survivable with additional collateral.
River Financial offers Bitcoin-backed loans to River clients. Competitive rates, US-focused, and backed by one of the most trusted Bitcoin companies. A good alternative if you already use River for buying Bitcoin.
SALT is one of the older Bitcoin loan providers (launched 2017). They offer competitive rates and have survived through multiple Bitcoin bear markets — providing some track record evidence.
Debifi offers non-custodial Bitcoin-backed loans using multisig, similar to Unchained's structure. Worth considering for borrowers outside the US who want non-custodial options.
P2P Bitcoin loans using multisig escrow — no custodian at all. Terms are set between borrower and lender directly. Higher friction but maximum custody security.
The biggest mistake Bitcoin-backed loan borrowers make: taking the maximum LTV and getting liquidated during normal Bitcoin volatility.
Practical rule: Never exceed 40% LTV. This gives you cushion for a 40%+ Bitcoin price drop without hitting margin call territory.
At 40% LTV:
At 60% LTV (Coinbase maximum):
The reason Bitcoin-backed loans exist: borrowing is not a taxable event. Selling Bitcoin triggers capital gains tax. Borrowing against Bitcoin does not — the IRS has confirmed loans are not taxable (Revenue Ruling 2023-14 addressed crypto lending more broadly).
Example with $100,000 Bitcoin position (cost basis $10,000):
You pay ~12% annual interest on the $50,000 loan ($6,000/year) versus $13,500+ in taxes for selling. The loan pays for itself in under 3 years — and you still own all your Bitcoin.
This "never sell" strategy is the foundation of many Bitcoin HODL plans: buy Bitcoin, borrow against it, use the loan for expenses, never realize taxable gains.
Choose Unchained if:
Choose Ledn if:
Choose Coinbase if:
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