APX Lending Secures $20M: Crypto-Backed Loans Rebound?
APX Lending Secures $20 Million in Funding
Toronto-based APX Lending has raised $20 million in a funding round, reflecting growing demand for crypto-backed loans in Canada. The investment, including an accordion facility from Cypress Hills, allows APX to quickly scale operations. This follows APX becoming the first Canadian crypto-backed loan provider to receive Exemptive Relief from the Canadian Securities Administrators (CSA).
How APX Lending Works
Founded in early 2023 by the Coinberry team, APX Lending lets users borrow stablecoins and other digital assets using Bitcoin (BTC) and Ethereum (ETH) as collateral. Client funds are securely stored in segregated cold-storage wallets with BitGo (>$250 million insurance) and transferred using Fireblocks ($35 million insurance). While offering complete blockchain visibility of loan collateral, APX operates within the Centralized Finance (CeFi) space, not on-chain like decentralized finance (DeFi) platforms.
This funding round coincides with a resurgence in Bitcoin and other crypto prices. The rise of Bitcoin above $70,000 in early 2025 has spurred renewed interest in crypto-backed loans, allowing long-term holders (HODLers) to access liquidity without selling their assets. The Canadian lending market is also projected to reach USD 3.42 billion by 2030 (26.5% CAGR), with 10% of 18-34 year-old Canadians using crypto platforms for borrowing (Ontario Securities Commission, 2023).
Is the Crypto Lending Sector Rebounding?
The crypto lending sector faced significant challenges in 2022 with the collapses of platforms like Celsius and BlockFi. However, indicators suggest a potential recovery. The APX Lending funding round, coupled with rising Total Value Locked (TVL) in crypto lending protocols (>$15 billion in April 2025, up from $9.8 billion in Q4 2024, according to DeFiLlama), points towards renewed investor confidence.
Mauricio Di Bartolomeo, co-founder of Ledn, predicts a significant increase in Bitcoin-backed loans as interest rates become competitive with traditional financial instruments. Leading protocols like Aave, MakerDAO, and APX Lending are experiencing a growth in lending volumes.
Disclaimer: This content reflects the author's opinion and is subject to market conditions. Conduct thorough research before investing in cryptocurrencies. The author and Codeum bear no responsibility for personal financial losses.
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