Market Opportunity
The Market Demand for On-Chain BTC-Backed Lending
The demand for permissionless, on-chain BTC-backed lending is evident. Today, however, this demand is primarily served on Ethereum through custodial wrappers such as WBTC.
As of June 19, 2025, approximately 41.34% of the wBTC on Ethereum—amounting to 53,269 out of 128,851 wBTC—are utilized in lending protocols. Aave holds the majority share with 41,690 wBTC, followed by Compound with 6,088, Morpho with 2,701, Sky with 1,307, and Spark with 996 wBTC.
Growth Potential
As Bitcoin’s market capitalization grows and more holders prefer borrowing rather than selling, the size and significance of the BTC-backed lending market will continue to expand.
For example, the borrowing power of 10,000 BTC today is vastly different from what it was ten years ago, highlighting how BTC’s price appreciation amplifies the utility of borrowing over time.
The current activity on Ethereum is merely a proxy for broader market demand. On Bitcoin-native rails, this opportunity becomes even more compelling.
Why Non-Custodial Lending Matters
Non-custodial lending is fundamentally aligned with Bitcoin’s core ethos: self-custody, decentralization, and trust minimization. Just as Bitcoin has been adopted as a more sovereign and programmable alternative to physical gold, non-custodial financial infrastructure is the next logical step in that evolution.
While custodial solutions have temporarily met early demand, they inherently contradict Bitcoin’s principles. Despite Bitcoin’s long history, there is still no permissionless, non-custodial lending protocol for native BTC—leaving the market largely untapped.
The Untapped Opportunity
Let’s take a conservative projection:
BTC reaches $1,000,000 per coin
100,000 BTC are locked in Side Lending
50% Loan-to-Value
1% annual interest spread to the protocol
→ This would generate $500 million in protocol revenue annually
This is the scale of the opportunity we’re building toward, a new financial primitive for the world’s most important digital asset, delivered in a way that honors its foundational principles.
Last updated