Bitcoin-Backed Lending
Offer collateralized lending using Bitcoin. Automated LTV monitoring, margin calls, and custody-independent infrastructure. Powered by Lana, our purpose-built lending platform.
Offer collateralized lending using Bitcoin. Automated LTV monitoring, margin calls, and custody-independent infrastructure. Powered by Lana, our purpose-built lending platform.
Bitcoin holders want to borrow against their holdings without selling. Banks want the ability to offer modern financial products that customers expect. Lana handles the full lending lifecycle (origination, monitoring, margin calls, and close) while your institution controls custody and compliance.
Earn interest and fee revenue on loans secured by Bitcoin collateral with conservative LTV ratios.
Conservative loan-to-value ratios provide a substantial collateral buffer, reducing credit risk for your institution.
Bitcoin collateral stays with your qualified custodian. Your institution maintains full control over collateral assets.
Everything your institution needs to run a Bitcoin-backed lending program
Real-time loan-to-value ratio tracking with configurable thresholds for margin calls and liquidation triggers.
Automated borrower notifications when LTV approaches thresholds. Configurable grace periods and escalation paths.
Configurable liquidation workflows when collateral values breach limits. Manual controls with custodian-integrated execution.
Pre-built integrations with Comainu, BitGo, and other qualified custodians. Webhook-based communication for collateral operations.
Every action logged (user and system). Built-in financial reporting with balance sheet and P&L generation for regulatory examination.
Configurable roles and permissions for your team (bank managers, accountants, administrators) with full access control over loan operations.
Borrower requests loan amount and transfers Bitcoin collateral to custody.
LTV is calculated, terms are set, and funds are disbursed to borrower's account.
Real-time LTV tracking with automated margin calls if thresholds approach.
Borrower repays loan. Collateral released minus any fees or interest.
Lana deploys as a sidecar alongside your existing banking core, whether you run Jack Henry, FIS, Fiserv, or another platform. No core replacement required.
Loan origination, LTV monitoring, and margin call data flow back to your general ledger through your core's existing integration pathways, keeping your reporting and compliance workflows intact.
Common questions about Bitcoin-backed lending with Lana
Bitcoin-backed lending is a credit product where the borrower pledges Bitcoin as collateral and the institution issues a loan denominated in fiat or stablecoin. The Bitcoin sits with a qualified custodian for the life of the loan, and the lender monitors a loan-to-value (LTV) ratio that compares the outstanding balance to the current market value of the collateral. The borrower retains exposure to Bitcoin price upside while accessing liquidity without selling.
Lana, our Bitcoin-backed lending platform, tracks loan-to-value in real time using live market price feeds. Each loan has configurable thresholds for warning, margin call, and liquidation. When LTV moves toward a threshold the system updates the loan record, notifies operators, and surfaces the position in the bank's risk dashboards. Every price update and state change is recorded in an immutable event history that supports examination and audit.
When LTV crosses the margin call threshold, Lana triggers a configurable workflow: the borrower receives an automated notification with the cure amount and grace period, the loan is flagged for the operations team, and the institution can require the borrower to post additional collateral or pay down principal. If the LTV reaches the liquidation threshold, the bank can execute a configured liquidation through its qualified custodian. Margin call rules, grace periods, and escalation paths are set by the institution.
Galoy is custody-independent. The bank chooses its own qualified custodian, whether Comainu, BitGo, or another provider, and the Bitcoin collateral sits there for the life of the loan. Lana acts as the orchestration and lifecycle layer that connects to the custodian through pre-built integrations to record collateral movements, calculate LTV, and execute approved actions. Galoy never takes custody of customer Bitcoin.
Lana is API-first and deploys as a sidecar alongside the existing core, whether Jack Henry, FIS, Fiserv, or another platform. Loan origination data, LTV updates, margin call events, and accounting entries flow back to the core's general ledger through standard fintech integration pathways. Reporting and compliance workflows stay in the systems the bank already runs. There is no rip-and-replace and no requirement to migrate existing loan portfolios.
See how Galoy can help your institution capture the Bitcoin lending opportunity.