APX Lending Funding:- Exciting news in the world of crypto lending! Toronto-based APX Lending has successfully raised $20 million, signaling a strong vote of confidence from investors. This fresh capital is earmarked to meet the surging demand for “crypto-backed loans” right here in Canada.

The funding agreement includes what’s known as an “accordion facility” from Cypress Hills, a specialist private credit investment firm. Essentially, this accordion feature allows APX to easily increase its existing credit line as needed, providing valuable flexibility without having to overhaul the entire agreement each time.

This strategic move is all about empowering APX to rapidly scale its operations to meet growing market needs. It also arrives hot on the heels of APX achieving a major first: becoming the first Crypto-Backed Loan Provider in Canada to receive Exemptive Relief from the Canadian Securities Administrators (CSA)!

APX Lending Cypto-Backed Loans : How it Functions

​Established in early 2023, APX Lending is a crypto-backed lending platform based in Toronto. Interestingly, it’s the brainchild of the same team that brought you Coinberry, a well-known and licensed crypto exchange in Canada. The platform works by allowing crypto holders to borrow stablecoins and other digital currencies. They can use popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) as collateral to secure these loans.

When it comes to security, APX Lending takes it seriously. Client funds are stored in segregated cold-storage wallets provided by BitGo, a leading crypto custodian. BitGo offers substantial insurance coverage, over $250 million, for that extra peace of mind. Furthermore, for transferring crypto funds, APX uses Fireblocks, which adds an additional layer of security with $35 million of insurance coverage.

Transparency is key with APX Lending. They provide full visibility of your loan collateral on the blockchain throughout the loan term. However, it’s important to note that APX operates within the Centralized Finance (CeFi) sphere. This simply means that unlike Decentralized Finance (DeFi) platforms, APX Lending isn’t fully automated with smart contracts handling everything on-chain, from loan origination to potential liquidation.

The timing of this recent funding round is quite telling. Experts believe that the renewed energy in BTC and the broader crypto market, particularly Bitcoin’s impressive surge past $70,000 in early 2025, has sparked a fresh wave of interest in crypto-backed borrowing.

Interestingly, long-term crypto holders – often called HODLers – are once again looking at loan options as a way to access cash without having to sell off their crypto holdings.

The Canadian lending market for crypto is also poised for significant growth. Projections estimate it will reach USD 3.42 billion by 2030, representing a robust annual growth rate (CAGR) of 26.5%. Adding to this, a 2023 survey by the Ontario Securities Commission revealed that 10% of Canadians aged 18–34 have already borrowed through crypto platforms or firms.

A Sector on the Rebound?

The crypto lending space has certainly been through a rollercoaster. In 2022, major platforms like Celsius and BlockFi stumbled during the crypto winter, significantly shaking investor confidence.

This period followed a series of impactful events, including the collapse of LUNA/UST, the financial troubles of Three Arrows Capital, and the FTX bankruptcy. However, it appears that this challenging chapter might be turning a corner towards a more cautious and steady recovery.

This new funding for APX Lending is a strong indicator of renewed optimism in the digital asset lending market. This positive shift is particularly noticeable given the evolving regulatory landscape and growing institutional interest in alternative, collateralized financing solutions.

Adding to this sentiment, Mauricio Di Bartolomeo, co-founder and CSO of Ledn, another prominent digital asset loan platform based in Toronto, recently suggested a potential bullish outlook for the sector.

“You’re going to see a Cambrian explosion of bitcoin-backed loans, because the rates are going to drop to a point that is going to make them competitive with home equity or personal lines of credit, or other types of instruments,” Di Bartolomeo remarked in a recent interview with a well-known media outlet.

According to data from DeFiLlama, the total value locked (TVL) in crypto lending protocols has been steadily increasing, recently surpassing $15 billion as of April 2025. This is a notable jump from $9.8 billion in Q4 2024, showing clear growth.

Moreover, leading platforms in the space like Aave, MakerDAO, and newer players such as APX Lending are experiencing a gradual but consistent increase in lending volumes. This trend further reinforces the near-term positive outlook for crypto lending.

Disclaimer: The content may include the personal opinion of the author and is subject to market conditions. Always do your own thorough market research before investing in cryptocurrencies. Neither the author nor the publication assumes any responsibility for your personal financial losses.