APX Lending, Canada’s first regulated digital-asset-backed lender, launched a five-year revolving line of credit on September 3 that lets clients borrow against Bitcoin, Ethereum, or both, according to the company’s announcement. The facility carries no origination, prepayment, or liquidation fees and includes up to $250 million in collateral insurance coverage.
How the Line of Credit Works
Unlike APX’s fixed-term loans, which are collateralized by either BTC or ETH, the new facility can use both assets together to calculate borrowing capacity. A client holding $200,000 of Bitcoin and $100,000 of Ethereum can apply the combined $300,000 toward a single credit line; at 60% loan-to-value, that supports up to $180,000 of borrowing capacity. Annual rates range from 10.49% to 11.99% depending on the outstanding balance, and interest accrues only on the amount drawn, so borrowers pay nothing on unused capacity.
The revolving structure lets clients establish the facility once, then draw, repay, and redraw as their needs change rather than starting a new loan each time. Available credit adjusts dynamically with the market value of the collateral, rising or falling as the pledged Bitcoin and Ethereum appreciate or depreciate.
A Regulated Lending Framework
APX was the first digital-asset-backed lender approved by Canadian securities regulators and is registered with both FINTRAC and FinCEN. Founded in 2023 and based in Toronto, the company now spans fixed-term lending, revolving credit, and a Lending-as-a-Service platform that lets banks and fintechs offer APX-powered products to their own clients. “A revolving line of credit is something our clients have asked us for repeatedly,” said founder and chief executive Andrei Poliakov. “You may need money for a purchase today, an investment three months from now and a business expense later in the year. You shouldn’t have to start a new loan every time.”
Crypto-Backed Credit Broadens
The launch extends a widening market for crypto-backed borrowing. Ledn recently projected that the Bitcoin-backed loan market could reach $1 trillion over the next decade, while banks have begun accepting digital assets as collateral, with Sberbank planning to lend against Bitcoin, Ethereum and USDT. APX’s move signals that regulated lenders are graduating from single-transaction loans toward products that mirror traditional banking lines of credit, even as borrowing capacity stays tied to the market value of the pledged crypto.
