Lava, a bitcoin-focused financial platform, disclosed it has raised $200 million and launched a global bitcoin-backed line of credit (BLOC) offering borrowing rates starting at 5%, marking an expansion in the crypto-collateralized lending space.
Lava Debuts Bitcoin-Backed Line of Credit, Secures $200M Funding
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Lava Secures $200M to Advance Bitcoin Lending
CEO Shehzan Maredia announced the move on X, calling it “the biggest day in Lava’s history.” He added, “We believe that bitcoin is an asset you should hold forever. But that doesn’t mean you can’t unlock the purchasing power you’ve built up.”
Essentially, Lava’s BLOC product allows users to access instant USD liquidity without triggering taxable events or selling their bitcoin holdings. In his X post, Maredia emphasized that borrowers can draw funds in real time, with no monthly payments or fixed terms.
He said that Lava’s 5% rate can be locked for a year, after which new loans will range from 5% to 7%, depending on size. A 2% capital charge — tied to the borrower’s highest outstanding balance during the year — is the platform’s only fee, which Lava says is “much better than an origination fee.”
Per the website’s information, the startup is backed by Peter Thiel’s Founders Fund, Khosla Ventures, Susquehanna, and now investors like Procap’s Anthony Pompliano and the founder/president and portfolio manager of EMJ Capital, Eric Jackson, whom Maredia welcomed in his post.
Maredia wrote:
“Like bitcoin, this is a multi-decade project. We’re just getting started, and I’m thrilled to have them on board.”
Lava’s web portal shows competitive terms: a 5% fixed interest rate compared to industry averages between 9.5% and 15%, zero payment processing fees, and a 5% USD yield option. The company also plans to release the Lava Card, which will let users spend directly from their credit line while earning bitcoin rewards.
According to Maredia, Lava’s BLOC is live and available globally at lava.xyz. The company joins a growing group of crypto firms offering bitcoin-backed and crypto-backed credit in 2025, as investors seek liquidity without parting with their digital assets — a trend reflecting the maturation of decentralized credit infrastructure and lending in the broader financial system.
FAQ ❓
- What is Lava’s BLOC?
Lava’s bitcoin-backed line of credit (BLOC) lets users borrow USD instantly without selling their bitcoin. - Who invested in Lava’s $200M funding round?
Founders Fund, Khosla Ventures, Susquehanna, Anthony Pompliano, and Eric Jackson backed the round. - What are Lava’s borrowing terms?
Rates start at 5% fixed for one year, with a 2% capital charge and no monthly payments. - Where can users access Lava’s services?
Anyone can sign up for the bitcoin-backed credit line at lava.xyz.
