Bitcoin Financial Services company Onramp has collaborated with Lending Platform Arch to introduce a Bitcoin-supported lending service, announced the companies.

The new product allows BTC holders to secure loans while keeping ownership of their assets, one step aimed at investors who want to access liquidity without selling their Bitcoin (BTC).

The service provides Bitcoin-collateralized loans, allowing borrowers to use their inventory as security while receiving cash or stablecoins in return. By using Bitcoin as security instead of selling it directly, borrowers can avoid capital gains taxes and maintain exposure to the asset’s potential award assessment, according to the press release.

Lending partner Arch specializes in asset-supported loans and will handle the insurance and loan distribution. Onramp, which focuses on Bitcoin Financial Solutions, will integrate the service into its platform, making it available to users looking for an alternative to traditional funding.

Bitcoin-supported lending is gaining popularity in this cycle as an alternative to traditional loans, especially among long-term BTC holders who prefer to keep their assets. This model has been used in various financial applications, from personal liquidity must institutional financing strategies.

Read more: Coinbase to offer Bitcoin-supported loans through Morpho
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