APX Lending introduces five-year line of credit for Bitcoin and Ethereum

APX Lending, Canada's first regulated digital-asset-backed lender, has introduced a five-year line of credit that allows clients to borrow against Bitcoin and Ethereum or both, marking a significant step towards integrating digital assets into traditional finance. The launch, which follows years of development, aims to bridge the gap between the blockchain world and conventional financial systems, providing borrowers with greater flexibility and accessibility.

The new five-year revolving facility enables clients to borrow against their digital assets, including Bitcoin and Ethereum, with no origination, prepayment, or liquidation fees. Borrowers can establish the facility once and draw, repay, and redraw funds as needed. The line of credit supports up to $250 million in collateral insurance coverage, ensuring clients' assets are protected.

"We're constantly looking for ways to make digital asset lending safer, more flexible, and better for the borrower," said Andrei Poliakov, Founder and CEO of APX Lending. "A revolving line of credit is a natural fit for clients who have evolving financial needs."

The line of credit operates on an adjustable interest rate ranging from 10.49% to 11.99%, depending on the outstanding balance. Unlike fixed-term loans, this facility allows for flexibility in borrowing and repayment. Clients can choose when to repay principal and redraw funds as their needs change, without incurring additional fees.

One of the unique features of the APX Line of Credit is its ability to use both Bitcoin and Ethereum together to calculate borrowing capacity. For instance, a client holding $200,000 in Bitcoin and $100,000 in Ethereum could use the combined value of $300,000 as collateral. At a 60% loan-to-value (LTV) ratio, this could provide up to $180,000 in borrowing capacity.

Dynamic changes in the market value of the collateral affect the available credit. As the value of Bitcoin and Ethereum fluctuates, borrowing capacity adjusts accordingly. This feature ensures that clients always have access to the appropriate amount of credit based on their current asset holdings.

APX Lending has built a robust infrastructure to support its digital-asset lending operations. The company operates within a regulated framework, ensuring compliance across multiple jurisdictions. Client collateral is held in segregated BitGo Trust cold-storage wallets, protected by up to $250 million in insurance coverage. Additionally, the APX platform allows clients to independently verify their collateral on-chain 24/7, providing transparency and security.

APX's systems continuously monitor digital-asset prices and loan LTVs, automatically managing margin notifications and partial liquidations as market conditions change. The 90/85 Standard, a key component of APX's collateral and risk management, ensures that only enough collateral is liquidated to reduce LTV from 90% to 85%, thereby preserving as much of the client's digital-asset holdings as possible.

The launch of the APX Line of Credit is part of the company's broader mission to bring digital assets and traditional finance closer together. By offering regulated digital-asset credit infrastructure that prioritizes custody, transparency, compliance, and risk management, APX aims to provide clients with the same financial standards they expect from traditional finance.

APX Lending was the first digital-asset-backed lender to receive approval from Canadian securities regulators and is registered with both FINTRAC and FinCEN. The company's global Lending-as-a-Service offering allows financial institutions and fintechs to offer APX-powered digital-asset lending products to their clients without building the infrastructure from scratch.

Eligible borrowers can now access the APX Line of Credit through the company's website at www.apxlending.com.