Crypto Loans in Canada: How to Compare Your Options in 2026

A crypto-backed loan can provide liquidity without an immediate sale of your Bitcoin, but Canadian availability is not uniform. A provider may serve some provinces, restrict others, or change its product set after this article is published.

This guide compares the structures Canadian borrowers may encounter and explains the questions to answer before transferring collateral. Information was checked on 3 September 2026.

Check current Ledn availability and your indicative rate — account-level eligibility and the terms shown before application govern.

Crypto loan options for Canadians

This is not a safety ranking or a confirmation of availability. Verify each product directly.

Ledn Bitcoin-backed loans in Canada

Ledn was founded in Canada and originated its first Bitcoin-backed loan in 2018. For eligible Canadian residents, its Dollar Loan uses native BTC collateral and typically starts at 50% LTV.

Current published terms include:

• USD 500 minimum loan, requiring at least USD 1,000 equivalent in BTC
• 12-month standard term
• 9.25%–11.49% APR, based on the size of each individual loan
• no traditional credit check; identity and location checks apply
• no required monthly payments before closure
• no early-repayment penalty
• no 2% administration fee for Canadian residents, according to Ledn's Help Center

Ledn's Help Center states that Dollar Loans are not available to residents of Quebec, New Brunswick, Nova Scotia or Saskatchewan. Dollar Loans continue to be available in other provinces, subject to account-level eligibility. It also says B2X Loans have been wound down in Canada.

Review Ledn's live eligibility page

Why the custody terms matter

With a collateralised loan, the important question is not only whether assets sit at a custodian. It is what rights the agreement gives each party.

For Ledn Custodied Loans, collateral may only be re-posted to an institutional USD funding partner or a Ledn-sponsored financing vehicle. Ledn says it remains in custody and is legally ring-fenced or bankruptcy-remote as applicable. Neither Ledn nor the partner may lend it out to generate interest.

Ledn also publishes Proof of Reserves and an Open Book Report. Those disclosures can help a borrower assess the business, but they do not make borrowing or custody risk-free.

How the other models differ

Multi-asset centralised lenders

Nexo advertises a credit line backed by BTC, ETH and more than 100 supported assets, with BTC shown at 50% LTV. Its lowest advertised rate depends on conditions including loyalty tier and LTV. YouHodler describes loans against various crypto assets with a USD 100 minimum in its Help Center.

For either provider, confirm Canadian availability, the contracting entity, the rate that applies to your account, collateral rights and the action taken at a margin threshold.

DeFi protocols

Aave and Compound allow overcollateralised onchain borrowing in supported markets. Rates and parameters can change with utilisation or governance. Using Bitcoin exposure may require a tokenised form of BTC on another network, adding issuer, bridge, network, smart-contract, oracle and liquidity dependencies.

DeFi can provide self-directed access, but the borrower is responsible for wallet security, transaction execution and continuous position monitoring.

What happens if Bitcoin falls?

Your LTV rises as collateral value falls. At Ledn, notifications are sent at 70% and 75% LTV. You can add BTC, make a partial or full repayment, or use Auto Top-Up where available. Auto Top-Up activates at 70% and targets 68%. Liquidation is automatic at or above 80%, and a 0.50% trade spread applies when BTC is sold.

Model a stressed market before opening the loan. At 50% initial LTV, if debt stayed constant, a 37.5% fall in collateral value would move LTV to 80%. Accrued interest and price adjustments can reduce that buffer.

Canada-specific checks before borrowing

1. Confirm your province is eligible on the day you apply.
2. Identify whether proceeds arrive in USD, CAD or stablecoins and calculate conversion costs.
3. Ask a Canadian tax professional how loan proceeds, collateral conversion, repayment with BTC and liquidation may be treated.
4. Read the current loan agreement for custody, re-posting and insolvency terms.
5. Decide how you would respond to a 70% LTV notification.

Frequently asked questions

Are Bitcoin-backed loans legal in Canada?

Products may be offered to eligible residents subject to federal and provincial requirements. Availability differs by provider and province. This article is not a legal determination; check the provider and obtain advice if needed.

Does Ledn offer loans everywhere in Canada?

No. When checked, Ledn said Dollar Loans were unavailable in Quebec, New Brunswick, Nova Scotia and Saskatchewan. Other provinces remain subject to individual eligibility.

Is a crypto loan taxable in Canada?

Borrowing may be treated differently from selling, but using, converting or liquidating crypto collateral can have tax consequences. Ask a qualified Canadian tax adviser.

Can I borrow Canadian dollars against Bitcoin?

Available payout rails vary. Ledn loans are denominated in USD, although local fiat or stablecoin payout methods may be available. Confirm conversion and bank charges.

What is the minimum Ledn loan in Canada?

Ledn's current Help Center states a USD 500 minimum loan with at least USD 1,000 equivalent in BTC, subject to eligibility and the live application terms.

Editorial sources

Related Ledn guides: Bitcoin loan rates, crypto lending platforms and Ledn security.

• Ledn product changes in Canada
• Ledn Loans Help Center
• Ledn eligibility
• Nexo Credit Line
• YouHodler loan guide
• Aave borrowing guide
• Compound III documentation

This article is general information only. It is not financial, investment, legal, accounting or tax advice and does not confirm availability in any province. Digital assets are volatile; collateral can be liquidated, causing financial loss. Verify current terms and consider independent advice.