Crypto
Crypto Loans Hit $73.6B in Q3 2025: What You Need to Know
Crypto loans are reaching new heights, with $73.6 billion in Q3 2025, but what exactly is a crypto loan and how do they work?
A borrower can deposit Bitcoin or Ethereum as collateral to receive a loan in stablecoins or fiat currencies without selling their assets.
The lender holds the collateral and issues a loan with interest over the loan term. The key metric is the loan-to-value ratio, or LTV, which varies by platform and asset.
CeFi platforms like Nexo offer 50% LTV for Bitcoin-backed loans, while DeFi protocols enforce similar thresholds through smart contracts. Higher LTV means more borrowed cash but a thinner margin of safety before liquidation.