Lygos
Non-custodial Bitcoin-backed loans for institutions using native DLC technology - no wrapping, no rehypothecation, no custodians.
Why We Recommend Lygos
Lygos Finance uses Discreet Log Contracts (DLCs) to create a structurally non-custodial lending system. Bitcoin collateral is locked in native 2-of-2 scripts on the Bitcoin blockchain, meaning only the borrower and lender can move funds - Lygos itself cannot access, freeze, or rehypothecate your bitcoin.
The platform explicitly avoids wrapped BTC or synthetic collateral, keeping all bitcoin operations on the native Bitcoin network. Loan mechanics are fully on-chain, transparent, and auditable via DLCs, eliminating the need for shared custodians and cross-jurisdictional complexity that plagued previous centralized lenders.
The founding team brings institutional experience from Anchorage Digital, StarkWare, ConsenSys, Shopify, and JPMorgan, bringing enterprise-grade operational knowledge to the platform's design.
Best For
Lygos is purpose-built for institutions and high-net-worth individuals seeking Bitcoin-backed credit without the counterparty risks that led to failures at centralized lenders like Celsius and BlockFi. Borrowers can access USD liquidity (via USDC/USDT on Ethereum) while keeping their BTC collateral in native Bitcoin scripts rather than handing it to a custodian.
The platform serves sophisticated borrowers who understand DLC mechanics and want verifiable, on-chain loan terms. With loan sizes ranging from $25,000 to $100 million and platform capacity around $100M, it targets entities that need meaningful credit facilities while maintaining cryptographic control over their collateral.
Lenders benefit from bilateral agreements with transparent collateral positions, avoiding the opacity and rehypothecation risks of pooled lending models.
Services & Features
- Bitcoin-backed loans ($25K-$100M)
- Non-custodial DLC collateral
- Native BTC collateral (no wrapping)
- USDC/USDT loan proceeds
- On-chain auditable loan terms
- Institutional credit facilities
- Bilateral lending agreements
Considerations
Currently in early-stage institutional engagement with no public retail access or self-serve onboarding. No published independent security audits, insurance coverage details, or explicit geographic restrictions. Interest rates and fees are negotiated bilaterally rather than publicly listed.
