Canadians Can Now Borrow Against Bitcoin Holdings Without Selling

For Canadians who need cash but don't want to sell their Bitcoin holdings, there's an alternative option: borrowing against those coins. This approach allows individuals to tap into some of the value of their Bitcoin without triggering a taxable event, at least not yet.

The key players in this space are APX Lending and Ledn, both of which offer Bitcoin-backed loans. APX has secured approval from Canadian securities regulators, while Ledn has taken steps to mitigate potential risks by limiting rehypothecation and implementing strict margin calls.

APX offers loans with a loan-to-value (LTV) ratio of up to 60%, with interest rates ranging from 9.99% to 11.49%. The platform also boasts a high level of transparency, releasing regular updates on its loan book's performance.

Ledn, on the other hand, offers loans with an initial LTV of 50%, and has implemented alerts at 70 and 75% LTV, as well as automatic liquidation at or above 80%. The platform also emphasizes its commitment to keeping collateral safe from rehypothecation.

Other options for Canadians include Netcoins, which offers lending through APX's infrastructure, and Balance, a Calgary-based custodian that has struck an arrangement with APX. Secure Digital Markets is another option, but it caters primarily to institutional investors.