Best Crypto Loans in Canada in 2025

Lending is a huge part of the crypto industry, but oftentimes it can be hard to find the best places to access loans. The growing nature of the crypto world means there are more services popping up that offer this, all with different interest rates and loan terms. Understandably, this can be overwhelming, especially for people who have never tried to obtain crypto-backed loans before. To help simplify this, let's take a look at some of the best crypto loans in Canada and for Canadian residents.

What is a Crypto Loan?

A crypto-backed loan is a type of loan where somebody borrows a certain amount of money (i.e. fiat currency) or cryptocurrency, relative to how much they put up for cryptocurrency collateral. The collateral can be in the form of any cryptocurrency; it all depends on what the lending provider accepts.

Related content: Crypto Lending Ultimate Guide

The Key Differences Between Crypto Loans and Traditional Loans

Crypto secured loans differ from traditional loans in a handful of significant ways. For starters, traditional loans tend to take the form of fiat, such as Canadian or US dollars, rather than crypto. Not only this, but because they are managed by a traditional financial institution (such as a central bank or an investment firm), the organization issuing them can often perform credit checks or other forms of background checks if they wish to. 

When it comes to obtaining a crypto loan, checks like this are much less common. This is because crypto asset loans are secured almost entirely by their collateral, and therefore most crypto lending services do not require to perform such checks. This also aligns with the ethos of crypto being a tool for everybody to use (free from unnecessary barriers and restrictions).

Another major difference regards the variety of rates that different lending providers offer. Sometimes you can find better loan rates from crypto lenders than you can from their traditional counterparts. This is primarily because the cost of funding crypto loans is reduced by the fact that such transactions are generally collateralized and this cost efficiency is transferred to borrowers globally in the form of lower interest rates. The crypto asset lending market is highly competitive and operates with lower overheads. Unlike traditional banks, many crypto platforms do not have physical branches, a large number of employees, or the regulatory costs associated with banking. As a result, they can pass on some of these savings to the borrowers in the form of more attractive interest rates.

That increased level of competition does, however, mean that you have to be more conscious of the provider you choose, as there might be a better option available to you from somewhere else. In many cases, you need to be extra vigilant and make an effort to find the best rates and loan terms.

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Compare the Best Bitcoin Loan Providers in Canada: Rates, LTVs & Minimum Amounts

Let's take a look at some of the best crypto loans for Canadian residents, and provide a brief overview of them.

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Ledn

Ledn is a top choice for Canadian citizens looking for crypto loans, as it offers highly competitive rates, and has a legacy of being deeply transparent in its actions. In an age where many crypto-backed lending providers have been deliberately opaque and have become unexpectedly insolvent, it is extremely important to work with companies that have an exceptional reputation and proven track record. With this in mind, Ledn is well-versed when it comes to risk management, and understands how to navigate these matters with ease and care. Not only this, but Ledn offers its standard crypto loans with a current APR of 12.4% and a loan-to-value ratio of 50%.

However, it is worth bearing in mind that Ledn does not operate throughout Canada. In particular, the service does not offer loans to Quebec, New Brunswick, Nova Scotia, and Saskatchewan.

Nexo

Nexo used to be a leading name in the crypto lending space, although in early 2023, it faced some regulatory issues in certain jurisdictions. That being said, Nexo still offers crypto loans, with their loan-to-value ratio set to 50%, and interest rates between 6-14%. However, it is worth bearing in mind that you can only achieve such positive rates if you qualify for their premium status, which is not available or accessible to everybody.

YouHodler

YouHodler is a crypto platform that offers a wide array of tools, including loans. The company provides collateral options that include a wide selection of cryptocurrencies, including Bitcoin, along with several lesser-known altcoins. These can have a loan-to-value ratio of up to 97%, which is the company’s defining feature. 

Binance

Binance is one of the most well-known crypto platforms in this industry, providing a wide array of tools and services worldwide. Not only does it provide loans for a large number of crypto-asset secured loans, but it also has one of the lowest barriers of entry, with its minimum loan requirement being 1 USD. 

The Risks of Crypto Loans

Like all aspects of the crypto market, the lending sector also comes with some risks that you need to be aware of. 

Defaulting and Repayments

You need to be aware of how defaulting and repayments work. If you post crypto as collateral for a loan and the value of such crypto decreases, you may be required to deposit additional collateral for the loan. Your collateral may also be liquidated if defaulting occurs on your loan, leading to your collateral getting sold. Every provider will have slightly different rules and protocols, so you should always brush up on what these are before agreeing to any loans. Some companies can have seemingly restrictive or overly punishing rules in place that you definitely want to be made aware of beforehand.

Platform risk

Another risk that can occur is with the provider themselves collapsing, or becoming broken and defunct (if they are a decentralized application using smart contracts). It might sound like a rarity, but in recent years many crypto lending services have fallen apart, declared bankruptcy, or become insolvent. This includes big names such as BlockFi and Celsius Network. The best way to avoid situations like this is to pick from a highly reputable company who is dedicated to transparency and has a strong understanding of risk management.

Oftentimes, the lending providers that collapse are ones that have poor risk management skills which led to financial disaster, and then subsequently tried to hide their mistakes from their clientele. An example of good protocol is Ledn's Custodied loans, which are ring-fenced, meaning your loans are not exposed to the company's liabilities or the actions of other borrowers. This ensures your collateral remains secure even in the unlikely event of operational issues with the company.

Alternatives to Crypto Loans

Let's take a look at some crypto loan alternatives that are available to Canadian residents.

Traditional Loans: Some people may decide that crypto loans are not right for them, and that they would rather work with a service that deals primarily with traditional currencies. If you are somebody who needs money in fiat form and you do not have the time or the ability to convert it into Canadian dollars yourself, then turning to a traditional loan makes a lot of sense. In situations like this, they are often the better option than via crypto.

Staking: If you own certain cryptocurrencies, such as Ethereum or USDC, then you can stake your money away and earn interest on it. This can function as a helpful form of passive income. To do this, you usually have to lock away your money for a certain period of time before you can access it again, but after that period is up it returns to you. This is a great alternative if you have a sizeable amount of cryptocurrency already in your possession, and you do not need the money immediately (as returns when staking can take a while before they become significant). If you use a decentralized service for this, then in some cases the money never even leaves your digital wallet – it just becomes inaccessible for a period of time.

Qualifying for a Crypto Loan in Canada

Becoming eligible for a crypto loan in Canada is a relatively simple process. Let's briefly examine how it works.

Take a Look at the Rules Within Your Province

Some provinces may not allow crypto loans of any sort. This is because they believe such loans might pose significant risks to consumers, ranging from volatile market values, lack of regulatory oversight, to potential misuse in illegal activities. Crypto lending companies may also elect not to offer crypto loans in certain provinces. For example, Ledn does not offer their crypto loans in Quebec, New Brunswick, Nova Scotia, and Saskatchewan.

Credit Check Requirements

Some crypto loan providers may ask to perform a credit check. This does not always occur, as not every provider is able to do this, or makes the active choice to. However, some services may wish to get a credit report from you, so they can know more about who you are, financially speaking.

Digital Asset Qualifications

When you get a crypto loan in Canada, you typically need to use something for collateral (although some exceptions exist). This often takes the form of cryptocurrency, or some other assets typically found in a digital wallet. Each crypto-backed lender will have different rules and protocols for collateral, so it makes sense to check these out for yourself and see if any services align with your needs best.

Current Financial Standing and Repayment Terms

Just like in the traditional lending sector, your current economic position will be of interest to those offering crypto loans. Many companies want to know that you have a regular income and that you can be financially trusted with a loan. If there are any doubts, then some companies might choose to still offer a loan to you, under the condition that a higher collateral is provided. 

This is a measure to reduce the level of risk involved in issuing the loan. These factors could influence how the repayment process works, so it is good to keep this in mind and do as much research as you can on the provider you are interested in. That being said, decentralized crypto loan services will never ask for this, as their services are permissionless, so they do not need to approve of you.

There are many services that offer crypto loans in Canada, but they might not be right for everybody. Some people make the conscious decision to stay away from this type of financial instrument for a range of reasons. For instance, there is a lot of discomfort that can arise from agreeing to a loan. Some people may also feel unhappy with being tied to another body or service for the duration of the loan period. Another issue is that people may be unhappy with engaging with the crypto space, especially if they do not believe in its value or utility.

If this is the case, it is definitely worth checking out alternatives like traditional loans or staking.

Why Use Ledn For Your Crypto Loan in Canada?

When it comes to seeing which crypto loans in Canada work best for you, check out Ledn. Ledn offers standard and custodied Bitcoin-backed loans, which are perfect for BTC and ETH owners who want additional liquidity without selling their assets. These are extremely useful and have impressive stats such as a loan-to-value ratio of 50% and a current annual percentage rate of 10.40%

Related Content: How to get a Bitcoin Loan

When you use Ledn, you are working with a top-performing crypto lending provider with a strong reputation for risk management. Along with this, Ledn has a legacy of being deeply open and transparent, publishing their open book reports and proof-of-reserves data, where people can actively see what Ledn's reserves look like; updated periodically.

Conclusion

Finding the best crypto loans in Canada can be complicated, purely due to the wide array of services in the market. However, with this short guide, you should be able to perform your own research and decide for yourself which platform suits your needs the most appropriately.

If you are looking for a platform that offers not only competitive loan rates, but also has a legacy of transparency and strong risk management protocols, then Ledn is definitely a major choice to consider. With its standard Bitcoin-backed loans, as well as custodied loans, Canadian citizens can get access to the money they are looking for with ease, and via trusted methods.

Sponsored by 21 Technologies Inc. and its affiliates (“Ledn”). All reviews and opinions expressed are based on my personal views.

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