Lending & Borrowing Platforms

Lending & Borrowing Platforms typically aren’t banks, though their lending and borrowing services are very similar to those offered by traditional financial institutions. As non-banks, there may be less regulatory oversight, so be mindful of the risks involved.

Lending platforms let you post your digital assets as collateral so you can obtain loans of cash or stablecoins, generating liquidity without having to sell your digital assets.

These platforms don’t ask borrowers to submit their credit scores. Instead, they require that you post collateral – typically, in an amount higher than the amount you’re seeking to borrow. As a result, approvals are fast – within hours or less in many cases. However, if market volatility reduces the value of your collateral, the platform could automatically liquidate your digital assets while prices are low.

You can also lend your digital assets to many of these platforms. Doing so lets you earn income. This arrangement is akin to having a savings account: you deposit cash and the platform pays you interest on the balance in exchange for using your deposit as loans to other customers. Many platforms pay 5% to 12% in annual interest, typically paid in stablecoins or the same asset (e.g., bitcoin) you deposited. Be sure you understand counterparty risks: when the platform loans your digital assets, who are they loaning it to?

Learn More About These Leading Firms

Simply click on their name or logo to learn more.

Arbor

Founded in 2017, BlockFi was created with the goal of providing credit services to markets with limited access to simple financial products. BlockFi sets itself apart from other crypto asset service providers by pairing market-leading rates with institutional-quality benefits. Gemini Trust Company, LLC, a New York trust company regulated by the New York State Department of Financial Services, is BlockFi’s primary custodian.

Eaglebrook

SALT Lending is a global blockchain technology company working to enable consumers, businesses, banks and governments to benefit from their cryptocurrency holdings and the blockchain economy at large. SALT’s core business offering is crypto-backed loans that enable customers to collateralize their crypto assets such as Bitcoin, Ether, and Litecoin for a US Dollar or stablecoin loan.

Eaglebrook

Celsius Network is a Blockchain-based marketplace platform and access to curated financial services that are not available through traditional financial institutions. Celsius specializes in the fields of consumer lending, fintech, and financial services. It was founded in 2017 and is headquartered in London.

Nexo

Nexo is a cryptocurrency interest account and lending platform. The company holds itself out as the world’s largest and most trusted lending institution in the digital finance industry.

Aave
Colendi
Compound
Everex
Kava
Silvergate Bank
Zerion

Some companies listed underwrite or sponsor DACFP and/or its educational programs. Neither DACFP nor its affiliates, partners, subsidiaries or employees
are responsible for the products or services provided by any company listed. You should conduct your own due diligence before purchasing products or services.