Strike hits $10m in BTC-backed loans two days after launch

By: bitcoin ethereum news|2025/05/09 05:00:05

Bitcoin collateralized lending platform Strike has reached $10 million in loans just two days after its launch. As Bitcoin (BTC) becomes more mainstream, the market for lending against BTC is expanding rapidly. On Wednesday, May 7, Jack Mallers, the founder and CEO of Zap, Strike’s parent company, announced that the platform has issued over $10 million in loans just days after its launch. Saw some questions about pricing, partners, and future plans for our new #Bitcoin -backed lending product at @Strike . Recorded a quick video to break it all down, including how we plan to drive rates lower, enable proof-of-reserves, and more. Only the beginning for this industry pic.twitter.com/UEHFwtD21B — Jack Mallers (@jackmallers) May 7, 2025 Strike launched on May 6, allowing Bitcoin holders to use their BTC as collateral for loans. This gives users the ability to access liquidity without needing to sell their assets. According to Mallers, the platform aims to help Bitcoin evolve into a more mature investment product, with lending being a key component of that process. Bitcoin lending rates are still in double digits: Strike In a video posted on X, Mallers acknowledged that Strike’s lending rates remain high. The platform currently offers a 12% APR for monthly payments and a 13% APR for payments at maturity, well above traditional lending rates. Mallers explained that these elevated rates reflect the nascency of the Bitcoin lending market. Major lenders, he said, still don’t fully understand Bitcoin. Nonetheless, he expressed a strong commitment to reducing Strike’s lending rates into the single digits over time. Despite the current rates, Mallers believes Bitcoin-backed loans remain compelling for certain users, including himself. For example, mortgages require borrowers to own real estate, which typically sees a compound annual growth rate (CAGR) of around 3%. In contrast, Bitcoin has posted a CAGR of 30–50%, making it potentially more advantageous for long-term holders to borrow against BTC rather than sell it. Mallers also clarified that Strike is not a DeFi company. Instead, it operates as a financial institution that collaborates with other traditional financial partners. He noted that while he was unable to reveal those partners at this time, Strike is positioned to bridge Bitcoin and institutional finance. Source: https://crypto.news/strike-hits-10m-in-btc-backed-loans-two-days-after-launch/

-- Price

Federal Reserve Chairman Waller's debut featured a significant slimming statement, the cancellation of forward guidance, refusal to submit the dot plot, and the establishment of five working groups, vowing to uphold the 2% inflation target, which triggered a sharp decline in U.S. stocks and a surge ...

From Disruptor to Shadow Market: The Crypto Market is Becoming a Colony of Traditional Finance

"Coin-stock linkage" has evolved from the early stage of macro correlation and one-way penetration of emotional funds to the current 3.0 stage, where on-chain perpetual contracts provide extended trading hours and emotional signal value for traditional assets 24/7, and participate in Pre-IPO pricing...

Dalio's important long article: How to position in the current market environment?

Do not confuse the excitement for new technologies with whether those tech stocks are attractive.

OKX Star analyzes Binance's competitive advantages: when regulation levels the playing field, competition has just begun

OKX founder Star published a lengthy article, systematically analyzing Binance's competitive advantages over the years: regulatory arbitrage, speculative narrative cycles, social media control, and superficial compliance, stating that the essence of these advantages is not product capability, but ra...

New gameplay for participating in initial offerings on cryptocurrency exchanges

In this competition for cutting-edge assets, what has always been truly scarce is not the technology, but the underlying equity itself.

Why Is Bitcoin Down Today? What the Hawkish FOMC Means for SpaceX, Gold and Nasdaq

Why is Bitcoin down today? A hawkish FOMC pressured crypto and gold, while SpaceX surged to a $2.5 trillion valuation and Nasdaq gained attention. Here's what happened and why traders are looking beyond Bitcoin.

DeepSeek Financing Story

DeepSeek's financing insider information exposed: "Four-hour meeting" fully demonstrates Liang Wenfeng's determination for AGI, over a hundred institutions involved, Sequoia and Hillhouse rarely absent, not poaching talent is the hardest red line.

Morning Report | DeepSeek completes over $7 billion in financing, with a valuation exceeding $50 billion; Musk's personal wealth has surpassed the total market value of Bitcoin

Overview of Important Market Events on June 16

Cursor, why did you get on Musk's spaceship?

SpaceX set a record with its IPO, spending a staggering $60 billion to acquire the popular AI programming unicorn Cursor just four days later. Musk is using the ultimate puzzle of "super computing power + top coding engine" to propel the market value skyrocketing, surpassing Amazon in one fell swoop...

In the name of charity, for the benefit of the family: How the Trump family turned charity into profit?

This set of "beautiful rhetoric and value return to one's own people" has not stopped at charitable foundations; it has now almost been transferred intact to American Bitcoin.