Bitcoin holders often face a dilemma: you need liquidity, but you don't want to sell your BTC.
Selling Bitcoin can mean missing future upside, triggering taxes, and giving up sovereignty. Borrowing against your Bitcoin solves this and with Lendasat, you can do it on-chain, non-custodially, and without selling a single sat.
This guide walks you through exactly how to borrow stablecoins using Bitcoin as collateral on Lendasat, from choosing a loan offer to reclaiming your BTC.
What Does It Mean to Borrow Stablecoins Against Bitcoin?
Borrowing against Bitcoin means you lock BTC as collateral and receive a loan in stablecoins (USDC or USDT).
Your Bitcoin remains yours, secured in a 2-of-3 multisig escrow, and is returned once the loan is repaid.
This is a Bitcoin-native alternative to selling BTC or relying on custodial lenders.
Why Borrow Instead of Sell?
- Maintain long-term exposure to Bitcoin
- Access stablecoin liquidity for expenses or opportunities
- Avoid centralized custody and forced liquidations
- In most jurisdictions, borrowing is not a taxable sale (consult a professional)
How Lendasat Bitcoin-Backed Loans Work
Lendasat is a peer-to-peer lending protocol built natively on Bitcoin, not a bank or a custodian.
- Loans are overcollateralized
- BTC is locked in a non-custodial multisig
- Loan terms are fixed and transparent
- Stablecoins are sent directly to your wallet
You never give up control of your Bitcoin.
Step-by-Step: How to Borrow Stablecoins Using Bitcoin on Lendasat
Step 1: Create Your Lendasat Account
When you sign up, Lendasat automatically generates a non-custodial Bitcoin wallet for you.
ā ļø Important: Back up your seed phrase securely. Lendasat cannot recover it for you.
Step 2: Find a Stablecoin Loan Offer
Navigate to "Find Offer" and set your preferences:
- Loan amount
- Loan duration
- Payout method ā Stablecoins (USDC or USDT)
Lenders define the terms, including:
- Loan-to-Value (LTV)
- APR (interest rate)
- Duration
- Blockchain network for stablecoin payout
Browse offers and select the one that best fits your needs.
Step 3: Enter Required Addresses
You'll be asked for two addresses:
-
Collateral Refund Address (Bitcoin)
This is where your BTC will be returned after repayment.
š For privacy, use a fresh, unused BTC address.
-
Loan Address (Stablecoins)
This is where you'll receive USDC or USDT.
ā ļø Make sure the address matches the exact blockchain network specified in the loan offer (e.g., Polygon, Ethereum, Solana).
Double-check both addresses before proceeding.
Step 4: Submit the Loan Request
Click "Pick Offer."
- The lender is notified instantly
- They have up to 24 hours to approve the request
Once approved, the contract is ready to be funded.
Step 5: Lock Your Bitcoin Collateral On-Chain
After approval, Lendasat displays a Bitcoin address secured by a 2-of-3 multisig.
- Send the required BTC collateral to this address
- You may overcollateralize to reduce liquidation risk
- Funds remain locked until repayment or liquidation
Your Bitcoin is now secured on-chain.
Step 6: Receive Your Stablecoins
Once your BTC transaction confirms:
- The lender sends the stablecoin principal
- Funds arrive directly in your wallet
- You are free to use them immediately
ā You now have liquidity without selling your Bitcoin.
Understanding Risk: LTV and Liquidation
What Is Loan-to-Value (LTV)?
LTV measures how much you borrow relative to your BTC collateral.
Example:
- BTC price: $100,000
- Collateral: $20,000 in BTC
- Loan: $10,000
- LTV = 50%
Liquidation Thresholds
If BTC price drops and LTV rises:
- 80% ā Warning
- 85% ā Urgent warning
- 90% ā Liquidation
To avoid liquidation, you can:
- Add more BTC collateral
- Repay the loan early
How to Repay Your Loan and Get Your BTC Back
Step 1: Start Repayment
Go to your active loan and click "Manage Loan."
You'll see:
- Repayment amount (principal + interest)
- Stablecoin asset and network
- Repayment address
Step 2: Send Repayment
- Send the full amount in the same stablecoin and network
- Submit the transaction hash as proof
Step 3: Reclaim Your Bitcoin
Once the lender verifies repayment:
- Your BTC is automatically released
- Funds are sent to your refund address
- The contract is complete
š Your Bitcoin is back under your full control.
Why Borrow Stablecoins on Lendasat?
ā Bitcoin-native, non-custodial design ā On-chain transparency ā No forced rehypothecation ā Peer-to-peer market rates ā No need to sell BTC
Lendasat brings the "Buy. Borrow. Don't Sell." strategy to Bitcoin without banks, without custody, and without compromise.
Ready to Borrow Against Your Bitcoin?
If you're holding BTC and need liquidity, borrowing stablecoins on Lendasat lets you unlock value today while staying long Bitcoin.
š Explore live loan offers on Lendasat and borrow without selling.