Strike Ventures into Bitcoin-Backed Crypto Lending Market

Jack Mallers’ company Strike is venturing into the crypto lending arena by introducing Bitcoin-backed loans, announced on the company’s website in May 2025.

The new service allows users to obtain USD liquidity using Bitcoin as collateral, impacting only Bitcoin, with no current support for other cryptocurrencies.

Strike Unveils USD Loans Secured by Bitcoin

Jack Mallers’ Strike launched a new Bitcoin-backed lending product, letting users borrow USD against their Bitcoin holdings. This development is aimed at enhancing liquidity without selling Bitcoin, according to Strike’s official FAQ.

Strike’s services focus on Bitcoin exclusively, making it the primary affected asset. The platform does not support other cryptocurrencies like Ethereum in its current lending framework.

Market Dynamics Shifting with Strike’s Move

Strike’s entry into crypto lending could affect market dynamics, especially for Bitcoin. The new product utilizes Bitcoin as collateral, potentially influencing Bitcoin’s circulating supply, noted from past similar initiatives.

The absence of disclosed funding details raises questions about liquidity availability. Strike complies with local laws and KYC regulations, as mentioned on their website, but lacks government filings about this venture.

Learning from Past Bitcoin Lending Models

Strike’s operations mirror past Bitcoin-collateralized lending services by companies like BlockFi and Celsius, which allowed users to leverage Bitcoin for USD loans, impacting lending market rates and Bitcoin’s liquidity. Jack Mallers, Founder and CEO of Strike, once stated, “Bitcoin-backed loans let you unlock your bitcoin’s buying power, without selling your bitcoin. By using bitcoin as collateral, you can access cash liquidity…”

Industry experts highlight potential outcomes based on historical trends. The focus on BTC might restrict liquidity and not broadly influence other cryptocurrencies, according to past data analysis.