Bitcoin Loan Comparison

Nexo vs. Surge Credit

Nexo charges 10.9%–17.9% APR with $0 origination fees using custodial. Surge Credit charges 6.9% variable / 9.9% fixed APR with $0 origination fees using collaborative multisig (taproot vault, 3-of-4 signer network). See the full breakdown of rates, thresholds, and custody risk below.

Rates verified 2026-06-09

How do Nexo and Surge Credit compare for Bitcoin-backed loans?

Surge Credit advertises a lower headline rate at 6.9% variable / 9.9% fixed compared to Nexo's 10.9%–17.9%. However, Nexo's lowest rates require loyalty tier qualifications, and most borrowers pay significantly more than the headline rate. On a $1M loan held for 12 months, Surge Credit saves $40,000 in total first-year cost (interest plus origination fees). From a custody perspective, Surge Credit presents lower counterparty risk with its collaborative multisig (taproot vault, 3-of-4 signer network) model.

Nexo vs. Surge Credit: Feature-by-Feature Comparison

Nexo

Surge Credit

Interest Rate (APR)

10.9%–17.9%

6.9% variable / 9.9% fixedSurge Credit

Origination Fee

Max Starting LTV

50%

Margin Call Threshold

71.4% LTVNexo

None — liquidation at 90% LTV

Liquidation Threshold

83.33% LTV

90% LTVSurge Credit

Margin Call Window

Threshold-basedNexo

None — automated liquidation

Custody Model

Custodial

Collaborative multisig (Taproot vault, 3-of-4 signer network)Surge Credit

Rehypothecation

Yes

NoSurge Credit

Interest Payment

Capitalized

Minimum Loan

$50

No minimumSurge Credit

APR by Loan Size: Nexo vs. Surge Credit

Nexo's rates depend on loyalty tier (token holdings), not loan size. The table below shows the rate most borrowers actually pay at each tier. Total year-1 cost includes both annualized interest and any origination fees charged upfront.

Loan Size	Nexo APR	Surge Credit APR	Nexo Total Year-1 Cost	Surge Credit Total Year-1 Cost	Savings
$100,000	13.9%	9.9%	$13,900	$9,900	$4,000 with Surge Credit
$250,000	13.9%	9.9%	$34,750	$24,750	$10,000 with Surge Credit
$500,000	13.9%	9.9%	$69,500	$49,500	$20,000 with Surge Credit
$1M	13.9%	9.9%	$139,000	$99,000	$40,000 with Surge Credit
$5M	13.9%	9.9%	$695,000	$495,000	$200,000 with Surge Credit

Total year-1 cost includes annualized interest plus origination fees. Surge Credit rates are variable; the table uses a representative recent rate. Rates sourced from each lender's public rate pages as of 2026-06-09.

Custody and Collateral Security

Nexo and Surge Credit take fundamentally different approaches to collateral custody. Nexo uses Custodial. Your Bitcoin is held by Nexo and could be at risk in the event of a hack, insolvency, or regulatory action. Nexo also rehypothecates deposited assets, meaning your collateral may be lent to third parties. Surge Credit uses Collaborative multisig (Taproot vault, 3-of-4 signer network). Multiple key holders must coordinate to move funds, reducing single-point-of-failure risk but still requiring trust in the key coordination process.

Nexo: High (Custodial)

•Custodial
•Rehypothecation: Yes
•Interest capitalized (compounding)
•Standard tiers: Base 17.

Surge Credit: Medium (Multisig)

•Collaborative multisig (Taproot vault, 3-of-4 signer network)
•Rehypothecation: No
•Interest capitalized (compounding)
•Revolving BTC-backed USDC credit line on Base — launched 2026, early-stage.

Margin Call and Liquidation: Nexo vs. Surge Credit

Nexo triggers margin calls at 71.4% LTV and liquidates at 83.33% LTV. Surge Credit has no margin-call mechanism: positions become liquidatable automatically the moment LTV crosses 90%, with no warning threshold or response window.

Threshold	Nexo	Surge Credit
Max Starting LTV	50%	50%
Margin Call	71.4% LTV	None
Margin Call Window	Threshold-based	None — automated liquidation
Liquidation	83.33% LTV	90% LTV

Safety Buffer Comparison

Nexo: 33.3 percentage point buffer between starting LTV (50%) and liquidation (83.33%). Surge Credit: 40.0 percentage point buffer between starting LTV (50%) and liquidation (90%). Surge Credit provides a wider safety margin.

Which is better: Nexo or Surge Credit?

Choosing between Nexo and Surge Credit requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Nexo uses custodial with 10.9%–17.9% APR, while Surge Credit uses collaborative multisig (taproot vault, 3-of-4 signer network) with 6.9% variable / 9.9% fixed APR.

On a $250,000 loan, Surge Credit costs $24,750 in the first year versus $34,750 at Nexo, a difference of $10,000. Surge Credit charges no origination fee, so the only cost is interest.

The custody difference is material. Surge Credit uses collaborative multisig (taproot vault, 3-of-4 signer network), which means your Bitcoin requires multiple key holders to coordinate, reducing single-point-of-failure risk. Nexo uses custodial and rehypothecates deposited assets, meaning your collateral may be lent to third parties while your loan is active. In a platform insolvency scenario, Surge Credit borrowers' collateral is protected by the multisig architecture, while Nexo borrowers may face creditor claims.

Nexo is the better fit for borrowers who need smaller loans or instant access. Surge Credit is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Nexo: Standard tiers: Base 17.9% / Silver 15. Surge Credit: Revolving BTC-backed USDC credit line on Base — launched 2026, early-stage. Variable rate from 6.

Frequently Asked Questions

Is Nexo or Surge Credit cheaper for a $500,000 Bitcoin-backed loan?

Surge Credit is cheaper. On a $500,000 loan held for 12 months, Nexo costs $69,500 (13.9% APR) while Surge Credit costs $49,500 (9.9% APR). That is a $20,000 difference in the first year.

How does Nexo's custody model compare to Surge Credit?

Nexo uses custodial and rehypothecates deposited assets. Surge Credit uses collaborative multisig (taproot vault, 3-of-4 signer network). Surge Credit presents lower custody risk because your collateral requires coordination among multiple key holders.

What is the minimum loan amount at Nexo vs Surge Credit?

Nexo's minimum loan is $50. Surge Credit has no minimum. Surge Credit is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with Nexo or Surge Credit?

Nexo issues a margin call at 71.4% LTV (threshold-based, no fixed window) and liquidates at 83.33% LTV. Surge Credit has no margin call — positions are liquidated automatically the moment LTV crosses 90%. Starting from a 50% LTV, Nexo provides a 33-point buffer before liquidation, while Surge Credit provides a 40-point buffer.

Should I use Nexo or Surge Credit for a Bitcoin-backed loan?

It depends on your priorities. Nexo (10.9%–17.9% APR, custodial, min $50) is better for borrowers who value custodial and need smaller loan access. Surge Credit (6.9% variable / 9.9% fixed APR, collaborative multisig (taproot vault, 3-of-4 signer network), no minimum) is better for borrowers who value collaborative multisig (taproot vault, 3-of-4 signer network) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

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Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

See loan scenarios

$100K Loan $500K Loan $1M Loan Borrow Against 10 BTC

Looking for a non-custodial alternative?

Lygos offers 10% APR, $0 origination fees, and DLC-secured collateral where rehypothecation is cryptographically impossible.

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