Two Prime posted $827 million in Bitcoin-secured lending for Q3 2025, pushing its total issuance since launch past $2.55 billion. The record quarter highlights a sharp uptick in institutional demand for crypto-collateralized credit.
Summary
- Two Prime reported $827 million in Bitcoin-backed loans for Q3 2025, pushing its total issuance beyond $2.55 billion since launch.
- The milestone aligns with a broader industry surge, as Coinbase’s Bitcoin-backed lending platform recently surpassed $1 billion in originations.
- Bitcoin-backed loans enable institutions to unlock liquidity without selling holdings, offering a capital-efficient alternative to traditional credit.
According to a press release dated Oct. 9, Two Prime Lending Limited reported its strongest quarter yet, issuing $827 million in Bitcoin-backed loans and credit facilities during Q3 2025.
The Asheville-based firm, a secured lending affiliate of Two Prime Inc., said its cumulative loan book has now surpassed $2.55 billion since launching in March 2024. Clients include several listed Bitcoin miners and trading firms such as CleanSpark, Hut 8, Fold, and Flowdesk, highlighting the company’s growing foothold among institutional borrowers seeking liquidity against their Bitcoin positions.
Institutional appetite fuels Bitcoin-backed lending boom
Two Prime’s management attributes the surge in activity to shifting patterns in Bitcoin ownership. As more corporate treasuries, miners, and asset managers accumulate bitcoin, they are seeking sophisticated methods to generate yield and manage risk without divesting their holdings. Two Prime said it caters to this by offering over $3 billion in lending capacity through bespoke products.
These include tri-party custody arrangements with qualified custodians to secure collateral, structured products for complex risk-return profiles, and alternative structures like original issue discounts.
“We’re proud of our industry-leading role, which reflects our commitment to meeting clients where they are and crafting strategies that meet their individual business needs at any given time,” Two Prime CEO Alexander S. Blume said.
This activity is part of a broader industry surge. Just last month, Coinbase announced that its own Bitcoin-backed lending service, powered by the DeFi protocol Morpho on its Base network, surpassed $1 billion in originations barely ten months after launch.
Coinbase CEO Brian Armstrong has since set an ambitious target of $100 billion in on-chain borrow originations, signaling a massive projected growth trajectory for the entire crypto-collateralized lending sector.
Bitcoin-backed loans differ fundamentally from traditional bank lending. Instead of underwriting based on credit history or income, borrowers post Bitcoin as collateral, allowing them to access liquidity without selling their holdings or triggering taxable events.
Loans are typically over-collateralized, with strict margin requirements to guard against market volatility. For institutions, this model provides a capital-efficient way to unlock liquidity while maintaining exposure to the original cryptocurrency.
