Crypto Loans Hit Record $73.6B in Q3 2025 Amid Market Shift

Crypto loans have reached a record high of $73.6B in Q3 2025, allowing holders to borrow against their assets without selling them. This process works like a pawnshop for digital assets: the borrower hands over Bitcoin or Ethereum as collateral and receives a loan in stablecoins or fiat currency.

No credit check is required, but the collateral itself serves as the guarantee. The lender holds the collateral and issues a loan, which can be repaid with interest over weeks or months. Once the loan is repaid, the borrower gets their crypto back without ever selling it.

The market has split into two camps: centralized platforms (CeFi) like Nexo and Ledn, and decentralized protocols (DeFi) like Aave and Compound. DeFi now commands roughly two-thirds of all lending activity, with Aave dominating the space by a wide margin.