APX Lending Secures $20M Funding for Crypto-Backed Loans in Canada

APX Lending, a Toronto-based crypto-backed lending platform, has successfully secured $20 million in funding. This investment is aimed at meeting the growing demand for crypto-backed loans in Canada. The funding round includes an accordion facility provided by Cypress Hills, a private credit investment firm. This facility allows APX to expand its existing credit line without the need for renegotiating the entire deal, providing the company with the flexibility to scale operations rapidly.

This funding comes at a pivotal time for APX Lending, which recently became the first Crypto-Backed Loan Provider in Canada to receive Exemptive Relief by the Canadian Securities Administrators (CSA). The platform, established in early 2023 by the team behind Coinberry, one of Canada’s prominent licensed crypto exchanges, enables crypto holders to borrow stablecoins and other digital assets using major tokens like Bitcoin (BTC) and Ethereum (ETH) as collateral. Client funds are stored in segregated cold-storage wallets with BitGo, a leading crypto custodian offering over $250 million of insurance. Additionally, all crypto funds are moved using Fireblocks, which offers a further $35 million of insurance coverage.

APX Lending operates within the Centralized Finance (CeFi) domain, providing complete visibility of loan collateral on the blockchain throughout the tenure of loans. Unlike decentralized finance (DeFi) platforms, APX Lending does not operate entirely on-chain with automated smart contracts managing loan issuance and liquidation. This centralized approach ensures a higher level of security and regulatory compliance, which is crucial in the current market environment.

The timing of this funding round is significant, as analysts suggest that a resurgence in BTC and crypto prices, particularly Bitcoin’s climb past $70,000 in early 2025, has reignited demand for crypto-backed borrowing. Long-term holders (HODLers) are once again exploring loan options to unlock liquidity without liquidating their positions. This trend is supported by projections estimating the Canadian lending market to grow to USD 3.42 billion by 2030, indicating a CAGR of 26.5%. According to the Ontario Securities Commission’s 2023 survey, 10% of Canadians aged 18–34 reported borrowing through crypto trading platforms or firms.

Crypto lending has had a tumultuous history, with major disruptions in 2022 when prominent platforms like Celsius and BlockFi collapsed during the crypto winter. This period of instability was marked by the fall of LUNA/UST, the insolvency of Three Arrows Capital, and the FTX bankruptcy. However, the sector appears to be on the rebound, with renewed optimism in the digital asset lending market. This is particularly evident in the shifting regulatory landscapes and increasing institutional appetite for alternative collateralized finance.

Mauricio Di Bartolomeo, co-founder and CSO of another leading Toronto-based digital asset loan protocol, Ledn, recently hinted at possible bullish sentiment in the space. He stated, “You’re going to see a Cambrian explosion of bitcoin-backed loans, because the rates are going to drop to a point that is going to make them competitive with home equity or personal lines of credit, or other types of instruments.” This sentiment is further supported by the total value locked (TVL) in crypto lending protocols, which has steadily climbed past $15 billion as of April 2025—up from $9.8 billion in Q4 2024. Leading protocols such as Aave, MakerDAO, and newer entrants like APX Lending are seeing a slow but steady uptick in lending volumes, highlighting near-term bullish sentiment.