Crypto Loans are easy with Cryptowise

Crypto loans are typically collateralized. The borrower deposits a certain amount of cryptocurrency (such as Bitcoin or Ethereum) as collateral on a lending platform. Based on the value of this collateral and platform-specific loan-to-value (LTV) ratios, the borrower can borrow funds. If the loan is not repaid, the platform can liquidate the collateral to cover the loan amount, protecting the lender. Interest rates and loan terms vary by platform and loan type.

The process generally includes:

1. Depositing collateral cryptocurrency

2. Borrowing funds against the collateral
3. Repaying the loan plus interest within agreed terms
4. Retrieving collateral upon full repayment

What Are Crypto Flash Loans?

Flash loans are a novel and unique type of crypto loan available only in decentralized finance (DeFi). Unlike traditional loans, flash loans do not require any collateral upfront. Instead, the borrower must repay the entire borrowed amount, plus a small fee, within the same blockchain transaction. If the repayment is not completed instantly, the entire transaction is reverted, meaning the loan never actually happened.

Flash loans harness smart contracts to enable this instant borrowing and repayment process.
Flash loans execute in a single transaction, the lender faces no risk of default, as the smart contract ensures the loan is repaid instantly or cancelled.

Crypto loan businesses have surged in popularity in 2025, with both  centralized (CeFi) and decentralized platforms (DeFi) facilitating billions in  outstanding loans. The total value of crypto-backed loans (DeFi and CeFi  combined) reached about $44.25 billion at the end of Q2 2025, with DeFi  loans accounting for $26.47 billion—an all-time high for decentralized  lending.

 Crypto lending is now an entrenched part of the digital asset ecosystem,  with billions in loans outstanding and wide-ranging options for  institutional and retail borrowers, offering attractive alternatives to  traditional finance and increasing overall market liquidity.

Summary of the top crypto loan businesses and their loan values  in 2025

1. Tether (CeFi) : Outstanding loans approximately $10.14 billion, maximum  loan-to-value (LTV) around 70%, interest rates vary. It is the largest  centralized crypto lender.

2. Nexo (CeFi/DeFi) : Outstanding  loans about $1.96 billion, maximum LTV between 50-70%, interest rates  ranging from 5% to 18.9%. Nexo operates in both centralized and  decentralized finance markets.

3. Figure (CeFi) : Offers home  equity line of credit (HELOC) with outstanding loans around $11.1  billion, max LTV up to 75%, and an interest rate of about 8.91%. Known  for fast funding and advanced custody techniques.

4. Aave  (DeFi) : Holds over $23 billion in liquidity, max LTV typically 50-70%,  with variable interest rates based on liquidity pools. It is the largest  decentralized lending platform.

5.  Compound (DeFi) : Manages  billions in loans, with similar LTV ranges (50-70%) and interest rate  variation, providing a flexible asset borrowing environment.

These  platforms facilitate a wide spectrum of loan values and terms,  supporting both institutional and retail borrowers in 2025's crypto  lending market.