Bitcoin-Backed Loans Explained: How to Borrow Cash Without Selling BTC

You are not charged for access to liquidity. Interest applies only to the cash you actually use when LTV is below 20%.Borrowed amounts accrue interest based on your LTV. Lower LTV means lower cost.You choose when to repay. There are no early repayment penalties.BTC, ETH, SOL, and other assets can be combined to expand your credit line.Clapp alerts users when LTV approaches critical thresholds, giving time to act before liquidation risk escalates.BTC holders can borrow EUR, USDT, or USDC instantly through the Clapp Wallet.

Institutional BTC Credit Lines

Clapp also offers corporate credit lines with:

This makes Clapp a viable option for corporate treasuries, funds, and high-net-worth individuals seeking operational liquidity without selling long-term BTC reserves.

Understanding LTV and Liquidation Risk

LTV is the backbone of BTC-backed borrowing. It is calculated by dividing the borrowed amount by the collateral value.

Example:

If BTC price falls, LTV rises. When it rises too much, platforms may require repayment or additional collateral. Low LTV borrowing is safer and cheaper.

With a fixed loan, your LTV is locked in at origination. With a credit line, you borrow less and repay flexibly, which lets you keep LTV conservative. Clapp’s real-time LTV tracking makes this easier for borrowers.

What You Can Borrow: Cash, EUR, or Stablecoins

Most BTC-backed lenders offer stablecoins. Clapp expands this with EUR payouts, which matters for European users and institutions that operate in fiat.

Regardless of the payout currency, the underlying principle remains the same: your BTC stays intact, and you access liquidity without selling.

Who BTC-Backed Loans Are Best For

Borrowing against Bitcoin suits users who:

Want liquidity without triggering a taxable sale

Believe BTC’s long-term trajectory is upward

Need temporary access to capital

Prefer to avoid rigid, high-cost loan structures

Manage LTV proactively

It is less suitable for highly leveraged strategies or borrowers unwilling to monitor collateral value.

Bottom Line

Bitcoin-backed loans turn BTC into a productive asset without sacrificing long-term exposure. The key to borrowing safely is choosing a structure that aligns cost with usage and risk with transparency.

Platforms like Clapp make this increasingly efficient by offering a 0% APR on unused funds, usage-based interest, flexible repayment, and robust LTV tools. For BTC holders in 2026, credit lines represent the most practical and cost-efficient way to borrow cash without selling their Bitcoin.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.