Crypto-backed loans surge 74%, BlackRock slashes IBIT entry to $1 million

Borrowing against digital assets increased sharply in 2026 as both retail and wealthy investors responded to weakening crypto market conditions, according to new research from CryptoQuant based on CoinRabbit data. The report highlights a substantial rise in crypto-backed loan activity across major user groups, along with notable changes in collateral preferences.

Crypto-backed loan volumes jump in 2026

Retail borrowers averaged 53.5 loans per person in 2026, representing a 74% increase from 30.8 loans in 2025. High-net-worth users also ramped up borrowing, with average loans per borrower rising 18%, from 16.5 to 19.4.

This upward trend came as more crypto holders sought liquidity without selling their assets, using their portfolios as collateral. Lenders typically require borrowers to pledge more digital assets than the loan value, minimizing risk in the event of sharp market declines.

Repeat borrowing became increasingly common, with 65.1% of CoinRabbit users taking out multiple loans in 2026, up from 61.9% the previous year. The data also indicates retail borrowers waited longer between loans, averaging 21 days between transactions compared to 11 days previously.

Retail and high-net-worth investors sharply increased crypto-backed borrowing activity in 2026, with average loan frequency and repeat usage rising across the board.