Key Facts
Unchained Capital offers institutional-grade Bitcoin-backed loans with a unique 2-of-3 multisig security model, SOC 1 & 2 certified security, and a focus on larger loans ($150,000+). They're a regulated US lender with strong security practices but higher minimum requirements.
Pros
- 2-of-3 multisig escrow security model
- No rehypothecation risk (dedicated collateral vaults)
- No early repayment penalties
- SOC 1 & SOC 2 certified internal controls
- Regulated US lender with proper licensing
- Collaborative custody with third-party key agent
- Institutional-grade loan services
Cons
- High minimum loan ($150,000)
- 2% origination fee on principal
- Higher interest rates (10-15% APR)
- Limited availability (not all US states)
- No mobile app (web platform only)
- Slower approval (24-48 hours)
- No explicit insurance for collateral
Detailed Review of Unchained Capital Bitcoin Loans
Company Background
Unchained Capital is a US-based financial services company focused exclusively on Bitcoin. Founded with a mission to help individuals and businesses secure and leverage their Bitcoin holdings, the company offers a range of services including Bitcoin-backed loans, institutional custody solutions, and inheritance planning.
As a licensed lender operating through Lead Bank in Missouri, Unchained Capital brings a regulated, compliant approach to Bitcoin financial services. Their focus on collaborative custody and multisig security has established them as a trusted player in the institutional Bitcoin lending space.
Security Model
Unchained Capital's most distinctive feature is its security model, built around collaborative custody using a 2-of-3 multisignature escrow:
- Key 1: Held by the client (borrower)
- Key 2: Held by Unchained Capital
- Key 3: Held by third-party key agent
This approach means no single party has complete control over the collateral. For transactions to occur, two parties must approve. This significantly reduces custody risk compared to fully-custodial solutions, while still enabling the loan functionality.
Additional security features include:
- SOC 1 & SOC 2 audited internal controls
- Optional video verification for cosigning
- Dedicated collateral multisig with no rehypothecation risk
- No pooling of collateral across different borrowers
Loan Terms and Conditions
Unchained Capital targets higher-value Bitcoin loans with the following terms:
- Minimum loan amount: $150,000
- Maximum loan amount: No explicit maximum (institutional loans $3M+)
- Loan term: 360 days (12 months) fixed
- Interest rate: 10-15% APR (varies by collateralization and term)
- Origination fee: 2% of principal
- Early repayment: No penalties
- Collateral requirement: 50% LTV (200% initial collateral-to-principal)
- Repayment method: Monthly interest via ACH; principal via wire at term end
- Liquidation threshold: Collateral call at <150% CTP; forced liquidation at 120% CTP (≈83% LTV)
- Liquidation fee: 2% collateral sale fee on liquidation
User Experience
Unchained Capital offers a more traditional lending experience compared to some cryptocurrency native platforms:
- Web-based platform (no mobile app)
- Manual application review (24-48 hour approval time)
- Full KYC/AML verification required
- Business hours phone and email support
- Required two-factor authentication
The experience is designed for serious Bitcoin investors who prioritize security and regulatory compliance over speed or anonymity. User reviews are generally positive, with Trustpilot ratings of 3.2/5 (limited sample) and Google Reviews at 5.0/5.
Regulatory Compliance
As a US-based financial services provider, Unchained Capital places significant emphasis on regulatory compliance:
- Licensed lender operating via Lead Bank in Missouri
- Available in most, but not all, US states
- Full AML/KYC verification required
- SOC 1 & SOC 2 certified operations
- Comprehensive Terms of Service
This regulatory focus provides additional assurance for borrowers who value compliance and legal clarity, but may limit availability for some users and necessitate more extensive verification processes.
Verdict: Is Unchained Capital Right for You?
Unchained Capital is best suited for:
- High-net-worth Bitcoin holders needing $150,000+ loans
- Security-conscious borrowers who value multisig protection
- US residents seeking a regulated lending solution
- Those who prioritize control over their collateral
- Users comfortable with full KYC processes
However, it may not be ideal for:
- Borrowers seeking smaller loans
- Those seeking the lowest interest rates
- Users needing immediate approval
- Privacy-focused borrowers averse to KYC
- Residents of unsupported US states
Overall rating: 4.2/5 for security, regulatory compliance, and institutional-grade service