Digital asset infrastructure provider BitGo has launched a financing platform that lets institutional clients borrow and lend against liquid, staked and locked assets within a single custody account. The system consolidates borrowing, lending and collateral management into one workflow, reducing reliance on processes that typically require multiple counterparties and manual asset transfers.
The platform introduces portfolio-based lending, allowing clients to borrow against a mix of assets held in custody rather than posting collateral on a per-loan basis. Adam Sporn, head of prime brokerage and institutional sales at BitGo, said the offering reflects growing institutional use of crypto-backed financing and aims to give institutions flexibility to decide how, when and where to use assets to maximize capital efficiency. The update expands BitGo’s existing financing services to support a broader range of collateral.
BitGo’s platform supports loans backed by staked and locked tokens (such as staked or vesting positions), enabling institutions to use those positions as collateral without unwinding them, while maintaining visibility and control over assets held in custody. Institutional clients can also lend eligible assets through the platform, using the same account to deploy capital for yield or access liquidity for trading and treasury needs.
Crypto-backed lending carries risks, including collateral liquidation during market volatility and counterparty exposure depending on platform structure. Financing activity is handled within BitGo’s custody environment, with collateral held in segregated wallets and credit extended against assets including Bitcoin (BTC), Ether (ETH), Solana (SOL) and stablecoins. Funds accessed through the platform can be used for trading via BitGo’s brokerage services or for broader liquidity and capital management.
Bitcoin lending has expanded across exchanges, DeFi protocols and institutional markets over the past year. Mezo and Anchorage Digital began offering institutional Bitcoin-backed stablecoin loans and short-term yield strategies that enable borrowing against BTC held in custody while earning tokenized rewards from locked positions. Exchanges have re-entered the lending market: Coinbase relaunched a Bitcoin-backed lending product in the U.S., allowing users to borrow USDC against BTC via Morpho on Base, and Kraken introduced Flexline, offering crypto-backed loans with fixed terms from days to years for advanced users.
At the institutional level, infrastructure is shifting toward custody-integrated models. Lombard and Bitwise Asset Management announced work to let institutions earn yield and borrow against Bitcoin held in custody without moving underlying assets. Separately, Babylon Labs integrated with Ledger to enable BTC to be locked into programmable vaults while remaining in self-custody, a setup that could support lending and yield strategies.
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