Bitcoin-backed mortgages launch in Canada with distinct collateral handling

APX is introducing Bitcoin-backed mortgages in Canada, allowing borrowers to use cryptocurrency as collateral for property loans.

The firm stated that the property and the Bitcoin collateral will be managed as separate and distinct assets. This structure is designed to provide clarity in the event of a default or need for liquidation.

However, the company notes that prospective borrowers may still be unaware of the associated costs and risks. A primary risk is the potential for collateral liquidation if the price of Bitcoin experiences a significant drop.

The launch represents a growing intersection between digital assets and traditional finance, offering crypto holders a way to leverage their holdings without selling them. Similar products have emerged in other markets, testing the viability of crypto-backed real estate lending.