The Canadian financial landscape is changing quickly. New products are emerging to help people unlock value from the assets they already hold. One of the fastest-growing options in Canada and abroad is borrowing against cryptocurrency as collateral.

Instead of selling your Bitcoin or Ethereum, you can use it to secure a loan. This lets you access cash while keeping your long-term position in the market.

So if you’re wondering, “Can I borrow money using my Bitcoin or Ethereum in Canada?” the answer is yes.

This guide walks through how crypto-backed loans work, their benefits, the legal framework in Canada, and how APX Lending helps you safely loan against crypto.

Crypto: A new era of borrowing

For decades, access to credit in Canada depended heavily on your credit score. A high score meant better rates and more options. A low or thin file often meant high-interest debt, limited choices, or no approval at all.

That approach left out a lot of people:

• Canadians with valuable assets but limited credit history
• Investors with significant crypto holdings
• Businesses that keep Bitcoin or other digital assets on their balance sheets

Traditional lenders rarely consider crypto when they assess your net worth. Banks don’t treat Bitcoin or Ethereum the way they treat a house or other investable assets.

Crypto-backed lending changes that.

Instead of relying on your credit score, a lender looks at the value of your digital assets. You can use Bitcoin or Ethereum as collateral for:

• Investors seeking leverage: Get access to cash without selling your crypto or triggering a taxable event.
• Businesses holding crypto: Rather than selling Bitcoin on the balance sheet, some companies now use BTC-backed loans and may be able to write off interest as an expense.
• Young Canadians: People who haven’t had time to build credit can still tap the value of their holdings.
• Credit-challenged borrowers: Past mistakes matter less when the focus is on collateral, not your score.

Compared to many traditional bitcoin lending options, crypto-backed loans can offer:

• Greater flexibility: Use funds for investing, emergencies, or everyday expenses without impacting your credit score.
• Competitive rates: Platforms like APX Lending may offer attractive terms versus unsecured personal loans.
• Faster decisions: With no credit check, approvals are often quicker and more predictable.

In other words, crypto turns into a form of crypto credit—a way to unlock liquidity while still holding your position.

Understanding crypto-backed loans: The basics

A crypto-backed loan works much like any other secured loan.

1. You pledge crypto as collateral.
   You deposit Bitcoin or Ethereum with a lender such as APX Lending. Think of it like a security deposit. Remember, you need to pledge enough to meet our $10,000 loan minimum.
2. The lender holds your collateral securely.
   APX Lending holds your cryptocurrency with an insured, regulated custodian. Your bitcoin collateral loans are kept in segregated wallets, visible on-chain and held in your name as the borrower. If something happens to APX Lending as a company, your assets remain separate and protected.
3. You receive a cash loan.
   The loan amount is based on a percentage of your collateral’s value—this is the loan-to-value (LTV) ratio. For example, you might receive 30–60% of the value of your BTC or ETH. It's also worth noting that many lenders have loan minimums. APX Lending, for instance, has a loan minimum of $10,000 CAD or USDC (in select Canadian jurisdictions only). That means you can only take out a loan if it's at least $10,000.
4. You repay the loan plus interest.
   Over the agreed term, you make scheduled interest payments and repay the principal. Once you’ve repaid in full, your collateral is released back to you.

It’s similar to using your home as collateral for a mortgage—only here, you’re lending cryptocurrency instead of real estate.

Key benefits of crypto-backed loans

1. No credit check

This is the big differentiator of overcollateralized loans. Crypto-backed loans typically:

• Don’t require a traditional credit check
• Don’t impact your credit score
• Can be easier to access for borrowers who are new to credit or rebuilding

2. Accessibility for more Canadians

Whether you’re a young investor, a long-time HODLer, or someone with a complicated financial past, BTC loans can open doors that traditional lenders keep closed.

3. Flexibility and opportunity

Use your loan to:

• Consolidate debt
• Cover unexpected expenses
• Invest in your business
• Take advantage of new opportunities—while still holding onto your crypto’s upside

You’re not forced to sell your assets at a time that may not suit your strategy.

4. Safety and security

With APX Lending:

• Your collateral is stored in segregated, insured wallets
• Assets are held in your name with a third-party custodian
• Your funds are kept separate from APX Lending’s corporate funds

That structure makes loan against crypto safer than many unregulated alternatives.

Regulatory frameworks in Canada

Canadian regulators are still catching up with the technology, but the underlying legal tools already exist.

Across Canada, provinces have laws that govern how lenders take security over assets:

• In common-law provinces like Ontario, this is handled under Personal Property Security Acts (PPSAs) and Securities Transfer Acts (STAs).
• In Quebec, secured transactions fall under the Civil Code of Quebec (CCQ) and related provisions in the Code of Civil Procedure (CCP).

These rules were not written with cryptocurrency in mind, but they still apply. To make sure security interests are valid and enforceable, lenders must:

• Structure their collateral arrangements to comply with provincial law
• Account for tax rules, transfer limits, and currency regulations
• Consider how crypto is treated for the purposes of loan proceeds and repayment

A regulated lender that understands this environment is essential when you lend bitcoin or other assets as collateral. And if you're curious to learn more about Canada's crypto-lending ecosystem, here's a recap that covers the difference between licenced and unlicenced lenders and why it matters.

Instant crypto loan: How to access funds quickly

If you want a fast, secure and credit-score-agnostic way to unlock value from your Bitcoin or Ethereum, APX Lending can help.

With APX Lending, you get:

• Competitive rates and clear terms (12.99% APR)
• Transparent fees with no surprise charges (No origination fees)
• Exceptional customer support from a team that understands crypto (9am - 9pm weekdays, 24/7 weekends)
• Robust security for your collateral through insured custodianship (BitGo Trust, up to $250 million insured)

You can use APX Lending to:

• Secure an instant crypto loan
• Explore BTC-backed loans tailored to your needs
• Choose terms that fit your cash-flow and risk tolerance

Visit our website to learn more about bitcoin lending with APX Lending, or reach out directly if you’d like a personalized walkthrough.

Borrow against Bitcoin or Ethereum with APX Lending today—and turn your digital assets into a flexible funding tool.

Frequently asked questions