Bitcoin-backed loans

What is a Bitcoin-Backed Loan? A Bitcoin-Backed Loan allows you to borrow euros by posting Bitcoin as collateral, without selling your BTC holdings. This product is designed for businesses that need liquidity while maintaining their Bitcoin exposure.

Key Features:

• Borrow euros against your Bitcoin.
• Fixed loan terms for simplicity.
• Secure collateral custody managed by Blockrise.

How Does It Work?

1. Choose Loan Terms
   • Loan period: 12 months (fixed)
   • Interest rate: 8% annually
   • Initial LTV (Loan-to-Value): max 50 %
   • Loan amount: €20,000 minimum, steps of €10,000, up to €5,000,000
2. Post Collateral
   • Deposit BTC into your dedicated collateral wallet (provided by Blockrise).
   • Wallet is secure and controlled by Blockrise for agreed actions only.
3. Receive Funds
   • Once collateral is confirmed, euros are transferred to your whitelisted IBAN.
4. Manage Your Loan
   • Monitor LTV and collateral value in your dashboard.
   • Add collateral or make partial repayments anytime.
   • Full repayment required at end of term (early repayment allowed, but full interest applies).

Check the term sheet for more details. 

Fees

• Origination Fee: 1.5% of loan amount (added to principal).
• Interest: 8% annually (paid at full repayment).
• Custody Fee: 0.25% of collateral amount (monthly).
• Liquidation Fee: 2% of liquidation amount (if triggered).

LTV Monitoring & Liquidation

• Healthy: LTV < 60%
• At Risk: 60–75% (notifications sent)
• Margin Call: 75% → Reduce LTV to ≤60% within 24h or partial liquidation occurs.
• Liquidation: 85% → Immediate partial liquidation to restore LTV to 60%.

How to Get a Bitcoin-Backed Loan

1. Log in to your Blockrise dashboard.
2. Select Loans and enter desired loan amount.
3. Review calculated collateral requirement, fees, and repayment details.
4. Sign the loan agreement by depositing BTC into your collateral wallet.
5. Loan disbursement occurs on the first day of the next month.

Frequently Asked Questions (FAQ)

1. Who can apply for a BBL?

Business clients with Bitcoin holdings and a verified Blockrise account.

2. Can I repay early?

Yes, but full 12-month interest applies.

3. What happens if BTC price drops?

Your LTV may increase. If it reaches 75%, you’ll receive a margin call. At 85%, liquidation occurs automatically.

4. How is BTC liquidation handled?

BTC is sold at fair market price (median of at least three exchanges). Proceeds reduce your loan balance.

5. Can I add more collateral?

Yes, adding BTC lowers your LTV and reduces liquidation risk.

6. What happens if I don’t repay at term?

Collateral is liquidated to cover the outstanding amount and fees. Remaining BTC is returned to you.

7. Are there tax implications?

Consult your tax advisor. Blockrise does not provide tax advice.

8. Who provides the Loan?

The loan is provided by Blockrise Lending B.V., a group entity which is outside the scope of MiCAR supervision.