Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
APX Launches 5-Year Bitcoin and Ethereum Credit Line
September 4, 2026 | NCFA Market Activity | Lending Consumer Credit And BNPL, Digital Assets, Embedded Finance
Revolving Crypto Credit With 60% LTV and Partial Liquidation
On September 3, 2026, Toronto-based APX Lending launched a five-year crypto-backed line of credit that lets eligible borrowers pledge Bitcoin, Ethereum or both, draw funds, repay them and borrow again. APX says the facility supports borrowing up to 60% loan to value, with annual rates from 10.49% to 11.99% depending on the outstanding balance.
Interest applies only to money actually borrowed, with no charge on unused capacity. APX also says there are no origination, prepayment or liquidation fees. The biggest change from APX's existing fixed-term loans is that borrowers can use the credit line more than once. They can keep approved collateral in place, draw funds when needed, repay them and borrow again.
Three Takeaways
1. Bitcoin and Ethereum Can Support Repeat Borrowing
APX gives the example of C$200,000 of Bitcoin and C$100,000 of Ethereum supporting up to C$180,000 of borrowing at the maximum 60% LTV. Available credit changes with the value of the collateral, so a falling crypto market can reduce borrowing capacity quickly.
The basic idea will be familiar to anyone who has used a securities-backed line or borrowed against property. The difference is the collateral. Bitcoin and Ethereum trade around the clock and can fall sharply in a short period, which makes ongoing collateral management a much bigger part of the borrower experience.
For long-term crypto holders, the attraction is access to cash without selling the underlying asset. That can help with business funding, debt repayment or other liquidity needs, although borrowing costs above 10% mean APX still has to compete with conventional secured credit where borrowers have access to it.
2. APX Sells Only Part of the Collateral at 90% LTV
APX begins warnings when a loan reaches 80% LTV. At 90%, collateral is partially sold until the loan returns to 85% LTV. APX introduced the 90/85 liquidation model in August and says there is no liquidation fee.
A borrower can still lose Bitcoin or Ethereum when prices fall. APX's approach changes how much gets sold once the threshold is reached rather than removing liquidation risk altogether.
Custody is part of the product design as well. The OSC decision granting APX exemptive relief says collateral held under the lending arrangement is not rehypothecated (not reused or lent out to other parties). APX says assets are held in segregated BitGo Trust cold-storage wallets. Client accounts are not protected by CDIC or the Canadian Investor Protection Fund.
3. APX Is Building Lending for Its Own Customers and Other Platforms
The revolving line follows APX's July launch of embedded crypto lending with Netcoins. Eligible Netcoins users can access APX loans through the platform while APX supplies the capital, underwriting, collateral management, compliance and servicing.
APX therefore doesn't have to rely entirely on finding borrowers through its own brand. Exchanges and wealth platforms can potentially add crypto-backed credit without building the lending operation themselves. The new revolving facility has not been announced as a Netcoins product, so the partner channel and the new line should be treated separately for now.
Ontario's securities regulator granted APX time-limited exemptive relief for its crypto-backed lending model, with the decision extending to participating jurisdictions through Canada's passport system. The order covers Bitcoin and Ether collateral and sets conditions around custody, disclosure and account suitability. It is tailored to APX and expressly says the decision should not be treated as precedent for other applicants.
Canada Now Has More Than One Crypto Credit Model
APX is entering a market where other Canadian platforms are experimenting with similar products. Shakepay's Bitcoin-backed credit line, launched in August, gives eligible Canadians another way to borrow against digital assets. Cayman-based Ledn also continues to offer Bitcoin-backed Dollar Loans in most Canadian provinces, although Quebec, New Brunswick, Nova Scotia and Saskatchewan are excluded. APX differs by supporting both Bitcoin and Ethereum and by offering a five-year revolving facility rather than Ledn's standard 12-month Bitcoin-backed loan.
See: Ledn Bitcoin Backed ABS Deal Enters Institutional Markets
One platform can own more of the lending relationship itself; another can plug into a specialist lender such as APX. For exchanges and wealth platforms, embedded credit creates a way to earn more from customers who already hold digital assets without forcing those customers to sell them.
Talking Point
Will crypto holders use Bitcoin-backed credit often enough to make it a mainstream secured lending product?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Leave a Reply