Bitcoin Loan Comparison

Unchained vs. Nexo

Unchained charges 14%–15% APR with a 2% origination fee using collaborative multisig (2-of-3). Nexo charges 10.9%–17.9% APR with $0 origination fees using custodial. See the full breakdown of rates, thresholds, and custody risk below.

Rates verified 2026-05-14

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

Nexo advertises a lower headline rate at 10.9%–17.9% 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.

Unchained vs. Nexo: Feature-by-Feature Comparison

Unchained

Nexo

Interest Rate (APR)

14%–15%

10.9%–17.9%Nexo

Origination Fee

$0Nexo

Max Starting LTV

50%

Margin Call Threshold

67% LTV

71.4% LTVNexo

Liquidation Threshold

83% LTV

83.33% LTVNexo

Margin Call Window

24 hoursUnchained

Threshold-based

Custody Model

Collaborative multisig (2-of-3)Unchained

Custodial

Rehypothecation

NoUnchained

Yes

Interest Payment

Monthly

Capitalized

Minimum Loan

$150,000

$50Nexo

APR by Loan Size: Unchained vs. Nexo

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

Unchained and Nexo take fundamentally different approaches to collateral custody. 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 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: Medium (Multisig)

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

Nexo: High (Custodial)

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

Margin Call and Liquidation: Unchained vs. Nexo

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

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

Safety Buffer Comparison

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

Which is better: Unchained or Nexo?

Choosing between Unchained and Nexo requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Unchained uses collaborative multisig (2-of-3) with 14%–15% APR, while Nexo uses custodial with 10.9%–17.9% 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.

Unchained is the better fit for borrowers who are borrowing $150,000 or more and want collaborative key control. Nexo is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Unchained: Commercial/institutional borrowers only since Jan 2024 — no consumer loans. Uses CTP ratio (inverse of LTV). Nexo: Standard tiers: Base 17.9% / Silver 15.

Frequently Asked Questions

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

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

How does Unchained's custody model compare to Nexo?

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

What is the minimum loan amount at Unchained vs Nexo?

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

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

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

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

It depends on your priorities. Unchained (14%–15% APR, collaborative multisig (2-of-3), min $150,000) is better for borrowers who value collaborative multisig (2-of-3) and have larger borrowing needs. Nexo (10.9%–17.9% APR, custodial, min $50) is better for borrowers who value custodial 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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