Spark Launches $210 Million Institutional Loan Program Backed by Bitcoin

Spark has launched an initiative to provide institutional loans backed by Bitcoin (BTC), allocating $210 million towards this program. The move allows institutions to borrow USDC while maintaining custody of their pledged assets with a qualified custodian.

Borrowers can use BTC as collateral and receive USDC, while the underlying Bitcoin remains in custody rather than moving directly to the lending protocol. This arrangement gives institutions a way to borrow against their BTC holdings while still maintaining control over their assets.

Anchorage Digital, a digital asset custodian, will hold the collateral and manage it through Atlas, an automated network that provides continuous margin monitoring, settlement, and tri-party services within a regulated custody framework. This combination of lending infrastructure with institutional custody and collateral controls is designed to provide a secure and reliable solution for institutions looking to borrow against their BTC holdings.