Lava Secures $200M Funding to Launch Bitcoin Line of Credit (BLOC) for Flexible Bitcoin Loans

COINOTAG News, citing BitcoinMagazine, reports that Lava has closed a $200 million financing round and launched the Bitcoin Line of Credit (BLOC). The facility enables flexible liquidity by pledging Bitcoin collateral, blending elements of a securities-backed loan and a home equity line of credit with no standard monthly repayments or fixed term requirements.

Lava operates as a closed-source self-custody wallet that offers loans up to 50% of a user’s highest Bitcoin balance (in USD). Importantly, many USD lending rails can be accessed with minimal personal information, positioning Lava between DeFi and traditional crypto finance. A liquidation protection feature can reallocate funds from the Bitcoin balance into collateral to guard against liquidation during heightened volatility.

Prominent angel investors Anthony Pompliano and Eric Jackson participated in the round. By prioritizing privacy and collateral-backed liquidity, Lava aims to carve a niche in the evolving Bitcoin lending market as a hybrid alternative to pure DeFi and centralized services.

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