Strike, the Bitcoin Lightning payments app founded by Jack Mallers, has launched a new lending program. This innovative service allows individuals and businesses to borrow cash using their Bitcoin holdings as collateral without selling the asset. 
Jack Mallers, who recently took helm at Twenty-One Capital, highlighted that users should not have to liquidate their valuable Bitcoin assets for access to cash.
Aimed at high-net-worth individuals and institutions, Strike’s new lending product provides loans of up to $2 million with a minimum 12% APR interest rate over 12 months.
* The loan program offers flexible repayment options: monthly payments or the full balance at the end of the 12-month term. Importantly, there are no origination or early repayment fees.
These Bitcoin-backed loans will not impact credit scores and are secured by third-party capital providers vetted by Strike, but retain legal responsibility for collateral during the loan period. Strike’s launch comes amid a resurgence in crypto credit markets, which recovered from the 2022 downturn that saw major players like BlockFi and Celsius collapse.
This innovation further positions Strike as a modern alternative for accessing liquidity during this bullish phase of Bitcoin and digital asset prices.
The company is also taking advantage of an increasingly favorable market by positioning itself as a leader in on-chain lending, mirroring the successes seen in Ethereum’s decentralized lending sector.