Psalion Built the Bitcoin-Backed Loan Treasury Teams Have Been Waiting For

5.5% fixed, up to 60% LTV, and your Bitcoin never leaves your wallet.

Bitcoin-backed lending has been around for years, but most of it works the same way: you hand over your coins, the lender holds them, and you hope nothing goes wrong on their end.

For anyone who lived through Celsius, BlockFi, or Genesis, that's not a hypothetical concern. It's the entire reason most serious holders have stayed away from the product category altogether.

Psalion just launched something different. Their new BTC Self-Custody Lending product lets you borrow USDT or USDC against your Bitcoin at a current fixed 5.5% annual rate. And you retain full control of your assets through a collateral self-custody structure. The lender doesn't hold unilateral control, and they can't move it or rehypothecate it. The collateral sits in a client-dedicated custody account through Utila / MPCVault for the entire life of the loan, and every transaction is auditable on-chain.

The mechanics are what make it interesting. The LTV thresholds that govern margin calls and liquidation aren't sitting in a back-office spreadsheet at the lender, they're written into the custody arrangement itself and executed directly within the custody environment. That means the rules are transparent, enforceable, and the same for everyone. There are no discretionary calls just because the market moves.

What it costs

The current terms: up to 60% loan-to-value, with margin calls at 80% and liquidation at 95%. Interest is fixed at 5.5% net per annum, paid in monthly installments. There's a 0.5% origination fee and no prepayment penalty. The default loan duration is three months, with other terms available on request. Your approval is based entirely on collateral value which means no credit check or restrictions on use of proceeds, while your funds arrive in your wallet within 12 business hours.

The minimum loan is $600,000, which puts this in the range of treasury teams, family offices, and large individual holders rather than retail.

Why people find it useful

The most obvious use case is dollar liquidity without selling. Selling Bitcoin is a taxable event. Borrowing against it isn’t.. For anyone holding a position with a low cost basis — which describes a lot of the people on the Bitcoin Treasuries leaderboard — that distinction matters a lot.

The custody piece adds extra peace of mind. When the collateral stays in your own dedicated wallet and is verifiable on-chain, you're not taking on the lender's operational risk. For corporate treasury teams with fiduciary obligations over those assets, that changes what's possible. You can access dollar liquidity without handing over the underlying position to someone else.

Who this is for

• Bitcoin treasury companies and public companies holding BTC on the balance sheet who need liquidity without trimming the position

• Family offices and private holders looking for structured dollar liquidity at favorable terms

• Institutional allocators who want a regulated facility to borrow against Bitcoin held in existing custody

Getting Started

Psalion operates within a regulated Bitcoin Service Provider framework. To register interest or request terms, reach out at invest@psalion.com. Terms subject to change.

Onward,

The BitcoinTreasuries.net Team

Sponsored content. This was produced in partnership with Psalion. This content is for informational purposes only. It does not constitute investment advice and is not an offer to buy or sell any security or financial product. Conduct your own due diligence and seek professional advice before making any financial decisions.