Bitcoin-Backed Loans: A New Approach to Lending for Crypto Owners

At the Blockchain Futurist Conference in Toronto on July 21, Andrei Poliakov of APX Lending discussed his company's approach to lending. Unlike traditional lenders, who consider a borrower's credit score and history when making loans, APX Lending uses the value of their crypto assets as collateral.

Poliakov explained that if someone has $100,000 worth of Bitcoin, they can borrow up to $60,000 from APX Lending. The loan is insured up to $250 million and stored in segregated cold storage wallets at BitGo Trust.

APX Lending received approval from the Ontario Securities Commission on April 1, 2025, allowing them to offer Bitcoin and Ethereum-backed lending across Canada. Poliakov emphasized that they do not lend coins back out or re-invest them.

In a separate interview at the conference, Maximillian Schwartz of Anvil Research Labs discussed his work on an Ethereum protocol issuing fully collateralized digital letters of credit. He argued that traditional lenders often price in defaults and risk, making it difficult for crypto owners to access loans. APX Lending's approach, he said, is innovative because it does not rely on traditional lending methods.