Lantern Finance, based in Las Vegas, has announced a reduction in its Bitcoin collateralized loan interest rate to 8%, establishing a new industry low for borrowers in the United States. This move significantly enhances the accessibility of such loans, enabling cryptocurrency holders to unlock liquidity from their Bitcoin without needing to sell their assets. This approach helps avoid taxable events and preserves the potential for long-term asset appreciation, all at a cost considerably lower than most borrowers have previously anticipated.
Unlike other lenders in the market, Lantern Finance's 8% rate is uniform for all borrowers, irrespective of the loan amount. This means that whether borrowing $1,000 or $1,000,000, borrowers receive the same optimal rate without any minimum borrowing requirements or tiered pricing based on loan size, ensuring clarity and transparency.
Lantern Finance's Bitcoin lending service is fully secured by BitGo, a trusted brand in digital asset security with $250 million in insurance coverage and assets held in cold storage. Borrowers gain access to institutional-grade security, a feature that most competitors cannot match and often charge a significant premium for.
Prince Jindal, co-founder of Lantern Finance, stated, "Our borrowers deserve to have their assets fully protected and to receive funds at a rate that does not erode their returns. Dropping our rate to 8% is a clear signal that we believe crypto-backed loans should be affordable and secure, not a trade-off between the two. This is the rate the market has been waiting for."
Jung Won Kim, another co-founder, added, "Security has always been our bedrock, and now we've built it into the most cost-competitive offering. With the support of BitGo's custodial infrastructure, we are proud to offer a product that sets a new standard for Bitcoin collateralized loans for US borrowers."
Lantern Finance continues to expand its crypto-backed lending platform in the US, supporting 12 digital assets and providing borrowers with a compliant and convenient way to access liquidity. The company employs a prudent risk model, including a maximum loan-to-value (LTV) ratio of 50%, a 72-hour grace period, and manual oversight during periods of extreme market volatility, measures that have effectively protected its borrowers during multiple market downturns.