APX teams up with Netcoins to offer crypto-backed loans
Essential brief
Toronto-based APX Lending has partnered with Vancouver's Netcoins to offer cryptocurrency-backed loans to Canadian users. APX provides the technology and infrastructure enabling Netcoins customers
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Highlights
Why it matters
This partnership between APX and Netcoins represents a notable advancement in the integration of cryptocurrency lending within mainstream financial services in Canada. By enabling crypto-backed loans through established trading platforms, it may encourage broader adoption of crypto credit products and prompt traditional financial institutions to explore similar offerings. This development could influence the future landscape of lending and asset management in the evolving digital economy.
Toronto's APX Lending has partnered with one of its investors, Netcoins, to enable the Vancouver-based crypto exchange's customers to access cryptocurrency-backed loans. APX, which began offering crypto-backed loans directly to consumers and businesses last year, has developed a software platform that allows partner companies to launch embedded credit products using Bitcoin and Ether as collateral under their own brand.
Netcoins, owned by Bigg Digital Assets listed on the TSX Venture Exchange, serves customers in Canada and the United States. Canadian users of Netcoins can now obtain crypto-backed loans directly within the company's digital asset trading platform. APX supplies the technology, capital, underwriting, collateral management, compliance, and servicing required for these credit products.
For Netcoins, this partnership introduces a new revenue stream without the need to develop in-house lending infrastructure. APX founder and CEO Andrei Poliakov explained that while the company initially built its own crypto lending business to validate its technology, the long-term strategy is to provide lending-as-a-service to other firms, including crypto companies and banks.
Poliakov, who previously co-founded and led the regulated Canadian crypto trading platform Coinberry, noted that as traditional financial institutions become more comfortable with cryptocurrencies, they may begin offering crypto-backed lending products to their clients. APX aims to provide the infrastructure for these services rather than compete directly with banks.
Crypto-backed loans allow clients to borrow against their cryptocurrency holdings without selling them. APX's clients have used these loans for purposes such as purchasing homes, expanding businesses, and acquiring additional crypto assets. In April 2025, APX became the first company of its kind to receive exemptive relief from the Canadian Securities Administrators to provide crypto-backed loans.
Other Canadian crypto firms are also entering this space. Toronto-founded Ledn, based in the Cayman Islands, offers Bitcoin-backed loans and anticipates growing demand. Montréal-based Shakepay is preparing to offer similar products after obtaining regulatory relief from Québec's securities regulator. However, Canadian banks and credit unions have been cautious about providing crypto-backed loans due to the volatility of cryptocurrencies. APX reports being in advanced discussions with some traditional financial institutions about potential partnerships.
Key topics in this update include teams, netcoins, and offer crypto-backed loans.