Crypto Loans Hit Record $73.6B in Q3 2025: What You Need to Know

Crypto loans reached a record $73.6 billion in Q3 2025, with borrowers depositing cryptocurrency as collateral and receiving a loan in stablecoins or cash.

The mechanism behind crypto loans is simple: deposit cryptocurrency, receive a loan, repay with interest, and get your original crypto back without selling it.

CeFi platforms, like Nexo and Ledn, operate similarly to traditional fintech companies, while DeFi protocols, such as Aave and Compound, use smart contracts to issue loans automatically.