Bitcoin Loan Comparison

Nexo vs. Unchained

Nexo charges 6.9%–18.9% APR with $0 origination fees using custodial. Unchained charges 14%–15% APR with a 2% origination fee using collaborative multisig (2-of-3). See the full breakdown of rates, thresholds, and custody risk below.

Rates verified 2026-05-14

How do Nexo and Unchained compare for Bitcoin-backed loans?

Nexo offers a lower headline rate at 6.9%–18.9% compared to Unchained's 14%–15%. 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, Nexo saves $21,000 in total first-year cost (interest plus origination fees). From a custody perspective, Unchained presents lower counterparty risk with its collaborative multisig (2-of-3) model.

Nexo vs. Unchained: Feature-by-Feature Comparison

Nexo

Unchained

Interest Rate (APR)

6.9%–18.9%Nexo

14%–15%

Origination Fee

$0Nexo

Max Starting LTV

50%

Margin Call Threshold

71.4% LTVNexo

67% LTV

Liquidation Threshold

83.33% LTVNexo

83% LTV

Margin Call Window

Threshold-based

24 hoursUnchained

Custody Model

Custodial

Collaborative multisig (2-of-3)Unchained

Rehypothecation

Yes

NoUnchained

Interest Payment

Capitalized

Monthly

Minimum Loan

$50Nexo

$150,000

APR by Loan Size: Nexo vs. Unchained

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	Unchained APR	Nexo Total Year-1 Cost	Unchained Total Year-1 Cost	Savings
$250,000	13.9%	14%	$34,750	$40,000	$5,250 with Nexo
$500,000	13.9%	14%	$69,500	$80,000	$10,500 with Nexo
$1M	13.9%	14%	$139,000	$160,000	$21,000 with Nexo
$5M	13.9%	14%	$695,000	$800,000	$105,000 with Nexo

Total year-1 cost includes annualized interest plus origination fees. Unchained: 2% origination fee. Rates sourced from each lender's public rate pages as of 2026-05-14.

Custody and Collateral Security

Nexo and Unchained 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. Unchained uses Collaborative multisig (2-of-3). 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)
•Base tier 18.

Unchained: Medium (Multisig)

•Collaborative multisig (2-of-3)
•Rehypothecation: No
•Monthly interest payments
•Commercial/institutional only since Jan 2024.

Margin Call and Liquidation: Nexo vs. Unchained

Nexo triggers margin calls at 71.4% LTV and liquidates at 83.33% LTV. Unchained triggers margin calls at 67% LTV and liquidates at 83% LTV. Unchained gives borrowers 24 hours to respond to a margin call. Nexo uses threshold-based triggers without a fixed response window.

Threshold	Nexo	Unchained
Max Starting LTV	50%	50%
Margin Call	71.4% LTV	67% LTV
Margin Call Window	Threshold-based	24 hours
Liquidation	83.33% LTV	83% LTV

Safety Buffer Comparison

Nexo: 33.3 percentage point buffer between starting LTV (50%) and liquidation (83.33%). Unchained: 33.0 percentage point buffer between starting LTV (50%) and liquidation (83%). Nexo provides a wider safety margin.

Which is better: Nexo or Unchained?

Choosing between Nexo and Unchained requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Nexo uses custodial with 6.9%–18.9% APR, while Unchained uses collaborative multisig (2-of-3) with 14%–15% APR.

On a $500,000 loan, Nexo costs $69,500 in the first year versus $80,000 at Unchained, a difference of $10,500. Part of Unchained's higher cost comes from its 2% origination fee, which adds $10,000 upfront on this loan size. Nexo charges no origination fee, so the only cost is interest.

The custody difference is material. Unchained uses collaborative multisig (2-of-3), 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, Unchained 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. Unchained is the better fit for borrowers who are borrowing $150,000 or more and want collaborative key control.

Key details to be aware of: Nexo: Base tier 18.9% is the rate most users actually get. Unchained: Commercial/institutional only since Jan 2024. Uses CTP ratio (inverse of LTV).

Frequently Asked Questions

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

Nexo is cheaper. On a $500,000 loan held for 12 months, Nexo costs $69,500 (13.9% APR) while Unchained costs $80,000 (14% APR + 2% origination fee). That is a $10,500 difference in the first year.

How does Nexo's custody model compare to Unchained?

Nexo uses custodial and rehypothecates deposited assets. Unchained uses collaborative multisig (2-of-3). Unchained presents lower custody risk because your collateral requires coordination among multiple key holders.

What is the minimum loan amount at Nexo vs Unchained?

Nexo's minimum loan is $50. Unchained's minimum is $150,000. Nexo is more accessible for smaller borrowers.

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

Nexo issues a margin call at 71.4% LTV (threshold-based, no fixed window) and liquidates at 83.33% LTV. Unchained issues a margin call at 67% LTV with a 24-hour response window and liquidates at 83% LTV. Starting from a 50% LTV, Nexo provides a 33-point buffer before liquidation, while Unchained provides a 33-point buffer.

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

It depends on your priorities. Nexo (6.9%–18.9% APR, custodial, min $50) is better for borrowers who value custodial and need smaller loan access. Unchained (14%–15% APR, collaborative multisig (2-of-3), min $150,000) is better for borrowers who value collaborative multisig (2-of-3) and prefer this platform's lending structure. 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

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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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