Japanese lending firm CRYL has introduced a new Bitcoin-backed loan service, allowing individuals and businesses to borrow up to 1 billion yen (approximately $6.2 million) without selling their cryptocurrency holdings.
The service officially launched on July 9 and is designed for retail customers, sole proprietors, property buyers, and corporate borrowers seeking access to Japanese yen while maintaining exposure to Bitcoin. By using BTC as collateral, borrowers can unlock liquidity without triggering a taxable sale of their digital assets.
According to the company, loan amounts start at 1 million yen (around $6,200) and extend to 1 billion yen, making it one of the largest Bitcoin-backed lending offerings currently available in Japan.
CRYL has set annual interest rates between 3.5% and 7%, depending on the applicant’s profile and loan conditions. The company also applies loan-to-value (LTV) ratios ranging from 40% to 60%, determining how much borrowers can receive against the value of their Bitcoin collateral.
The standard loan term is one year, with the option to extend in certain cases. Most borrowers will repay both the principal and accrued interest in a single payment at the end of the loan period. Customers using approved credit-line agreements may also qualify for additional borrowing, provided their LTV ratio remains below the lender’s maximum threshold.
The company said loan proceeds can be used for a variety of purposes, including business financing, tax obligations, real estate purchases, or personal expenses. However, applicants must complete CRYL’s credit assessment before approval.
As part of its lending terms, the company charges a 20% annual penalty rate on overdue balances. It also warns borrowers that significant fluctuations in Bitcoin’s market price could reduce the value of pledged collateral, potentially affecting loan conditions.
Unlike some international crypto lenders that support multiple digital assets, CRYL currently accepts only Bitcoin as collateral. Borrowers transfer their BTC to the lender for the duration of the agreement while receiving the approved amount in Japanese yen.
The model provides Bitcoin investors with an alternative to selling their holdings, which can result in taxable capital gains under Japanese tax regulations. Instead, borrowers retain economic exposure to Bitcoin while accessing cash through secured lending. However, they also assume repayment obligations and the risks associated with Bitcoin price volatility.
CRYL operates as a registered money lender in Tokyo and is affiliated with the Japan Financial Services Association. The company is also part of the J-CAM Group, which manages the BitLending cryptocurrency lending platform.
The launch places CRYL alongside established players already operating in Japan’s crypto-backed lending sector. Financial technology company Fintertech has offered Bitcoin-backed loans since 2020 and later expanded its services to include Ether as collateral.
Currently, Fintertech provides loans ranging from 5 million yen to 500 million yen at annual interest rates between 4% and 8%. CRYL’s maximum lending limit of 1 billion yen effectively doubles the upper borrowing limit currently offered by its domestic competitor.
Japan has continued exploring broader financial applications for Bitcoin beyond traditional trading and investment. Earlier initiatives have included research into Bitcoin-backed digital credit and tokenized corporate bond structures involving firms such as Metaplanet, JPYC, and Progmat. While those projects remain under evaluation, they reflect growing interest in integrating digital assets into regulated financial products.
Globally, crypto-backed lending has also continued to evolve. Companies including Strike and BitGo have recently introduced new financing products aimed at retail and institutional investors seeking liquidity without liquidating their cryptocurrency holdings.
CRYL’s latest offering adds another regulated option for Japanese Bitcoin holders looking to access capital while maintaining ownership of their digital assets. As demand for crypto-backed financial products grows, the success of the service will likely depend on borrower adoption, effective risk management, and Bitcoin’s market performance.
