Onramp and Arch Introduce Bitcoin-Backed Lending Service
- Onramp has partnered with Arch to launch a bitcoin-backed lending service.
- The service allows BTC holders to secure loans without selling their assets.
- Borrowers can use bitcoin as collateral to receive cash or stablecoins.
- This approach helps avoid capital gains taxes and retains asset exposure.
- Arch will manage underwriting and loan distribution, while Onramp integrates the service into its platform.
The collaboration between Onramp and Arch introduces a bitcoin-collateralized lending option, enabling BTC holders to access liquidity while maintaining ownership of their assets. This model is gaining popularity among long-term BTC investors seeking alternatives to traditional financing.
Source (2.6)https://www.coindesk.com/business/2025/02/20/onramp-and-arch-launch-bitcoin-backed-lending-service?rand=52298
