CRYL launches Bitcoin-backed loans up to ¥1B in Japan

A Japanese digital asset lender has launched a regulated loan product that allows borrowers to use Bitcoin as collateral to obtain yen without selling their cryptocurrency holdings. The company, CRYL, announced the service this week, offering loans of up to 1 billion yen, approximately $6.2 million, to both individuals and businesses.

The new product offers annual interest rates ranging from 3.5% to 7%. Borrowers must post a collateral ratio of 40% to 60% of the loan's value in Bitcoin, and the loan term is set at one year. According to the company, funds can be used for purposes including tax payments, business financing, and property purchases. Most loans will require a lump-sum repayment of principal and interest at maturity, and applicants must pass a credit screening process.

CRYL's launch introduces a new competitor into Japan's small but growing market for regulated crypto-backed lending. An established player, Fintertech, has offered similar loans since 2020. Fintertech, a joint venture majority-owned by Daiwa Securities Group, allows borrowing against both Bitcoin and Ethereum, with annual rates of 4% to 8% and a minimum loan amount of 5 million yen, or about $31,000....