Toronto-based APX Lending has secured a $20 million accordion facility to accelerate its expansion in Canada, where crypto-backed loans are experiencing rising demand.
APX Lending has secured a $20 million accordion facility from Cypress Hills, a private credit investment firm.
The provision allows the borrower to increase their borrowing without renegotiating the entire agreement, expanding like an accordion.
The company plans to use the facility to accelerate its expansion in Canada, which is experiencing rising demands for crypto-backed loans. ‘This accordion facility from Cypress Hills marks a major step forward in our mission to make crypto-backed loans transparent, secure, and accessible to Canadians,’ said founder and CEO Andrei Poliakov.
Crypto-backed loans allow individuals to borrow funds using their cryptocurrency holdings as collateral.
This type of loan is typically offered by specialized lenders and can provide access to liquidity for investors who want to maintain their crypto positions.
The loan amount is usually a percentage of the collateral's value, and interest rates vary depending on market conditions and lender terms.
Crypto-backed loans have gained popularity among traders and investors seeking to manage risk and capitalize on market opportunities.
APX Lending received exemptive relief from the Canadian Securities Administrators (CSA) at the start of this month. The exemption was granted based on the particular facts and circumstances of the application with the objective of fostering innovative businesses in Canada. This move is seen as a positive development for digital asset lending, which has faced challenges in the past.
The now more favorable regulatory attitude to crypto in the U.S. could help transform digital asset lending into a vibrant and competitive market. According to Ledn’s co-founder Mauricio Di Bartolomeo, Washington’s friendlier approach to crypto would help rates fall, with the effect evident beyond the U.S. ‘Gold in a vault in Switzerland is not gold in a vault in Venezuela,’ he said. ‘Bitcoin in Colombia is bitcoin in Madrid is bitcoin anywhere in the world.‘
Digital asset lending involves borrowing cryptocurrencies, tokens, or other digital assets from a lender in exchange for interest.
This type of lending has gained popularity with the rise of decentralized finance (DeFi) platforms.
Digital assets can be used as collateral to secure loans, allowing borrowers to access liquidity without selling their holdings.
The lending process typically involves smart contracts that automate repayment and interest calculations.
APX Lending offers lending with digital assets as collateral and plans to use the facility to expand its services in Canada. The company’s mission is to make crypto-backed loans transparent, secure, and accessible to Canadians. Founder and CEO Andrei Poliakov will be speaking at CoinDesk‘s Consensus 2025 in Toronto on May 14-15.
With a focus on innovation and customer satisfaction, APX Lending has gained recognition in the industry for its streamlined lending process and commitment to supporting growing businesses.
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