Bitcoin-backed loans are surging. Not as a hedge. As a new kind of leverage. Same greed. New wrapper.
“Twenty One Capital, backed by Cantor Fitzgerald and Tether, may begin issuing US dollar loans using Bitcoin as collateral… the company recently acquired about 5,800 BTC from Tether, pushing its total holdings to an estimated $5.13 billion.” https://cointelegraph.com/news/twenty-one-capital-bitcoin-loans-tether-btc-treasury
“Startups are venturing into an unknown form of capital: cryptocurrency-backed loans… Bitcoin loans have begun being used by an ever-growing number of founders as a way of attaining liquidity without selling out their long-term holdings.” https://www.fingerlakes1.com/2025/08/01/why-bitcoin-backed-loans-are-fueling-the-new-wave-of-tech-founders-in-nyc/
“Scaramucci described JPMorgan’s reported plans to offer loans backed by Bitcoin as a ‘big deal’… Another user reminded everyone about the 2008 housing crisis, suggesting that leveraging Bitcoin could create a new bubble.” https://www.benzinga.com/crypto/cryptocurrency/25/07/46677711/anthony-scaramucci-says-itll-be-a-big-deal-if-jamie-dimon-led-jpmorgan-allows-lending-against-bitcoin
“Bitcoin lending is making a quiet comeback… Major lenders of the previous cycle imploded after turning user deposits into undercollateralized loans… rehypothecation still lingers.” https://cointelegraph.com/news/bitcoin-loans-back-rewriting-book-celsius-burned
The playbook did not change. Just the asset. Subprime was backed by homes. This cycle is backed by crypto wallets.
Startups are using Bitcoin as collateral to avoid selling shares. Banks are circling. JPMorgan is sniffing around. Retail investors are already in.
The same rehypothecation methods that destroyed Celsius are back. Wrapped in “transparency” and “third-party custody.” But margin calls still trigger when prices swing wildly. Bitcoin does not do soft landings.
There is no clear explanation of how these loans will behave in a crash. No regulator has modeled the risks to the system. No lender reveals what happens if Bitcoin drops 40 percent overnight. Everyone talks about innovation. Nobody talks about liquidation points.
We learned nothing. We just swapped mortgage-backed securities for crypto-backed leverage. Same greed. Same blind spots. Same bubble.
