Shakepay rolls out bitcoin-backed loans to 1.5M users in Canada

Shakepay – a Canadian cryptocurrency platform regulated by CIRO (Canadian Investment Regulatory Organization) – has begun a phased launch of bitcoin-backed loans for its roughly 1.5 million users .

The Key Details

• Loan amount: C$100 to C$50,000
• Interest rate: Fixed 9.5% annual APR
• Loan terms: 3 months to 3 years
• Fees: No origination fees, no prepayment penalties
• Funding speed: Immediate upon approval
• Collateral: Bitcoin (BTC) only

Regulatory Approval

Shakepay secured a regulatory exemption from Quebec's Autorité des marchés financiers (AMF) – making this the first regulated crypto-backed loan product in Canada .

How It Works

Customers can borrow fiat currency (CAD or USD) by pledging their Bitcoin as collateral. This allows them to access liquidity without selling their crypto – and potentially triggering taxable events. The platform manages loan-to-value (LTV) in real time and issues margin calls when LTV reaches 80% .

Security Measures

• 95% of collateral is held in cold storage with third-party custodians, including Coinbase Custody
• The company does not rehypothecate client assets (meaning they do not lend out your crypto to others) 

What This Means for Borrowers

This is a legitimate, regulated lending product – not a predatory scheme. However, crypto-backed loans carry unique risks. If the value of your Bitcoin drops significantly, you may face a margin call or liquidation.

What You Can Learn

• Regulated crypto lending exists – look for products approved by financial regulators (like the AMF in Quebec)
• A fixed 9.5% APR is reasonable. Be suspicious of any crypto loan offering "0%" or extremely high rates.
• Understand liquidation risk before you borrow against volatile assets