Canada now has its first fully regulated crypto-backed lending platform, marking a significant shift in how digital asset holders can access liquidity without triggering a taxable sale. Netcoins, a subsidiary of BIGG Digital Assets, has integrated crypto-backed lending directly into its platform through a partnership with APX Lending, a lender that holds Canadian Securities Administrators (CSA) exemptive relief. The move opens borrowing access to over 275,000 registered Netcoins users across Canada.

Why Does Regulated Crypto Lending Matter for Canadian Users?

For years, Canadians interested in borrowing against their crypto holdings have faced a regulatory gray zone. Most platforms offering crypto-backed loans operate offshore and lack the legal standing to lend domestically under Canadian law. The Netcoins and APX Lending partnership changes that equation by operating under a CSA-authorized framework, which APX received on April 1, 2025. APX is also registered with FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada) and FinCEN in the United States, adding multiple layers of compliance oversight.

The practical benefit is straightforward: users can unlock cash from their Bitcoin (BTC) and Ethereum (ETH) holdings without selling them, which means they avoid triggering a taxable event and can maintain their long-term positions. This is particularly valuable for investors who believe in the long-term value of their holdings but need short-term liquidity for other purposes.

How to Access Crypto-Backed Lending on Netcoins

• Minimum Loan Amount: Borrowers must request a minimum of $10,000 Canadian dollars (CAD) against their Bitcoin or Ethereum holdings.
• Loan-to-Value Ratio: Users can borrow up to 60% of their collateral's value, with loan terms ranging from 3 to 60 months and interest rates starting at 9.99%.
• Application Process: The entire lending application happens inside the Netcoins Web App without requiring users to visit a separate website, re-verify their identity, or complete a traditional credit check.
• Funding Speed: Once collateral is received by APX Lending, borrowers can receive same-day funding in Canadian dollars.
• Repayment Flexibility: Users can choose from three repayment structures: monthly interest payments, amortized payments, or deferred interest, with the option to repay early or redraw at any time.

The absence of credit checks is notable. Traditional lenders rely on credit scores and financial history to assess borrowing risk, but crypto-backed lending uses the digital assets themselves as collateral. Since the collateral is held in insured, segregated BitGo Trust cold-storage wallets and is never re-lent or rehypothecated (a practice where lenders use borrowed assets as collateral for their own borrowing), the lender's risk is tied directly to the value of the assets securing the loan.

What Sets This Platform Apart From Offshore Alternatives?

The regulatory framework is the key differentiator. Most crypto-backed lending platforms advertising to Canadians operate from jurisdictions outside Canada and lack the legal authority to originate loans domestically. By contrast, APX Lending's CSA exemptive relief means it operates under Canadian securities law and is subject to oversight by provincial regulators. This regulatory standing provides users with legal recourse if something goes wrong and ensures the platform meets Canadian standards for consumer protection.

Additionally, APX Lending has undergone independent security audits. The platform's protocol logic has been verified by three separate blockchain analytics firms: Solidproof, Spywolf, and Cyberscope. The core development team also secured a verified Spywolf KYC (Know Your Customer) developer identity certificate, which means the team members are accountable to the community and regulators.

"Canadians who hold Bitcoin and Ethereum have been sitting on meaningful value with no compliant, convenient way to access it. That changes today. By embedding APX Lending directly within the Netcoins Web App, we're providing our users with a seamless experience backed by the most rigorous regulatory framework in the market," said Kim Dwyer, Netcoins Chief Operating Officer.

Kim Dwyer, Chief Operating Officer at Netcoins

The integration represents the full delivery of a strategic partnership announced in May 2025, when BIGG Digital Assets made an investment in APX Lending alongside the commercial partnership announcement. Today's launch brings that partnership to life for Netcoins' user base of over 275,000 registered Canadians.

What Does This Mean for the Broader Crypto Market?

The launch signals growing institutional confidence in crypto-backed lending as a legitimate financial service. As regulatory frameworks mature across jurisdictions, platforms that operate within those frameworks gain a competitive advantage over offshore alternatives. For users, it means more options for accessing liquidity without selling their holdings, which can reduce forced selling pressure during market downturns and provide a more stable source of capital for those who need it.

The move also reflects a broader trend in crypto markets toward compliance and institutional-grade infrastructure. Rather than fighting regulation, platforms like Netcoins and APX Lending are building within regulatory guardrails, which may accelerate mainstream adoption of crypto-backed financial services in Canada and potentially serve as a model for other jurisdictions developing their own frameworks.