Japanese lender launches Bitcoin-backed loans of up to $6.2M

CRYL is offering Bitcoin-backed loans to individuals and businesses as Japanese firms explore broader uses for BTC in lending and credit markets.

Japanese lender CRYL has launched Bitcoin-backed loans of up to 1 billion yen ($6.2 million), allowing individuals and businesses to raise fiat currency without selling their BTC.

On Thursday, the company announced that borrowers can access between $6,200 and $6.2 million at annual rates of 3.5% to 7%. The loans carry collateral ratios of 40% to 60%. They run for one year and can be used for expenses, including taxes, business funding and property purchases.

The launch expands Japan’s small market for regulated crypto-backed financing. In 2020, Fintertech, a Daiwa Securities Group and Credit Saison joint venture, launched a similar service and currently lends up to $3 million against Bitcoin or Ether. However, CRYL’s service advertises a higher ceiling and a lower minimum, while limiting collateral to BTC.