APX Lending Emerges as a Leader in Crypto-Backed Loans in Canada
In an encouraging display of renewed investor confidence, Toronto-based APX Lending has successfully raised $20 million to meet the surging demand for crypto-backed loans in Canada. This funding agreement includes an innovative accordion facility provided by private credit investment firm Cypress Hills. The accordion facility allows APX Lending to expand its existing credit line with ease, offering the flexibility needed for rapid operational scaling. This strategic move follows APX’s notable achievement of becoming the first crypto-backed loan provider in Canada to receive Exemptive Relief from the Canadian Securities Administrators (CSA). The funding marks a pivotal moment for the company in a landscape increasingly dominated by digital assets.
Understanding APX Lending’s Unique Offerings
Founded in early 2023 by the team behind Coinberry, a recognized licensed crypto exchange in Canada, APX Lending operates as a centralized finance (CeFi) platform that offers crypto holders the ability to borrow stablecoins and other digital assets leveraging major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) as collateral. The company prioritizes security by storing client funds in segregated cold-storage wallets managed by BitGo, a leading crypto custodian boasting over $250 million in insurance. Moreover, APX utilizes Fireblocks for moving crypto funds, ensuring an additional layer of security with another $35 million of insurance coverage. Crucially, APX Lending provides clients with complete visibility of their loan collateral via blockchain technology throughout the loan term, distinguishing itself from fully automated decentralized finance (DeFi) platforms.
A Timely Response to Market Trends
The timing of APX Lending’s recent funding round comes amidst a resurgence in BTC and crypto prices, particularly with Bitcoin’s impressive climb past $70,000 in early 2025. Analysts note that this price increase has reignited demand for crypto-backed borrowing, with long-term holders (HODLers) actively exploring loan options to unlock liquidity without the need to liquidate their holdings. Furthermore, the overall Canadian lending market is projected to grow significantly, with estimates predicting a market size of USD 3.42 billion by 2030 and a compound annual growth rate (CAGR) of 26.5%. According to the Ontario Securities Commission’s 2023 survey, approximately 10% of Canadians aged 18–34 have reported borrowing through crypto trading platforms, underscoring the increasing acceptance of crypto-backed loans among younger demographics.
Navigating the Challenges of Crypto Lending
Despite the current optimism surrounding the crypto lending sector, it is essential to recognize its tumultuous past. The industry faced substantial challenges in 2022, when major platforms such as Celsius and BlockFi collapsed amidst a severe crypto downturn, eroding investor confidence. This downturn was further exacerbated by catastrophic events, including the fall of the LUNA/UST algorithmic stablecoin, the insolvency of Three Arrows Capital, and the infamous bankruptcy of FTX. However, the current funding secured by APX Lending suggests an invigorating shift towards cautious optimism within the digital asset lending market. With evolving regulatory landscapes and a rising institutional appetite for alternative collateralized finance, the ground is shifting favorably for companies like APX Lending.
A Rebirth in Crypto Lending Sentiment
Recent insights from industry leaders bolster the notion that crypto lending is on the verge of a significant rebirth. Mauricio Di Bartolomeo, co-founder and Chief Strategy Officer of the Toronto-based lending protocol Ledn, has indicated that we may be witnessing the onset of a "Cambrian explosion" in Bitcoin-backed loans. He believes that decreasing interest rates will make these loans competitive with traditional financial instruments like home equity lines of credit or personal loans, attracting more borrowers into the sector. As per DeFiLlama, the total value locked (TVL) in crypto lending protocols has shown a steady increase, surpassing $15 billion as of April 2025, up from $9.8 billion in the fourth quarter of 2024.
The Road Ahead for APX Lending and Crypto Lending
In conclusion, APX Lending’s proactive fundraising and comprehensive service offerings are key indicators that the crypto lending sector is not only rebounding but also evolving. As lending volumes increase across prominent protocols such as Aave, MakerDAO, and emerging entities like APX Lending, the signals of a bullish trend are becoming more apparent. Aspiring borrowers and investors should remain informed about market conditions and opportunities as they emerge in this exciting space. With robust security measures in place and an adaptable business model, APX Lending is well-positioned to lead the charge in shaping the future of crypto-backed loans in Canada.
Disclaimer
The content in this article may represent the personal opinion of the author and is subject to fluctuating market conditions. It is advised that individuals conduct thorough market research before making any investment in cryptocurrencies. Neither the author nor the publication assumes responsibility for any personal financial losses incurred.
