Feature Release
4
min read
Firefish now supports USDT loans. If you've been looking to borrow USDT against Bitcoin without selling, or to lend USDT and earn yield on Bitcoin-backed loans, both are now possible directly on the platform.
Over the past few months, one request kept surfacing from both sides of the Firefish marketplace. Borrowers wanted access to liquidity in USDT without having to route through conversion steps. Lenders were holding significant balances in USDT and looking for a way to deploy that capital into structured, overcollateralized yield.
As of today, both can do exactly that. Firefish now supports USDT across the marketplace, alongside currencies including EUR, CHF, and CZK.
USDT is supported across both Standard and Instant Loans.
P.S. 0% fees and 5% rates are available for a limited time and subject to available liquidity. Read on to learn more.
What is a Bitcoin-backed USDT loan?
A Bitcoin-backed USDT loan is a loan where your Bitcoin acts as collateral and USDT is what you receive in return.
You don't sell your Bitcoin. You lock it on Firefish in a non-custodial escrow, receive USDT, and get your Bitcoin back in full once the loan is repaid. Your Bitcoin position stays intact throughout.
Here's how it works in practice. Say you hold 1 BTC and need $20,000 for a business expense. Selling means losing your position and triggering a taxable event. Instead, you lock your BTC (approximately $40,000, since Firefish adopts a 50% loan-to-value) as collateral on Firefish, borrow $20,000 in USDT, and cover the expense. When you're ready, you repay the loan and your Bitcoin is returned to you in full. If Bitcoin appreciated during that period, you benefit from that too.
You can borrow from €800 with no maximum — backed entirely by your Bitcoin collateral. No conversion steps. No losing exposure to price upside. Just capital, when you need it.
Learn how Bitcoin-backed loans work. Download our book “Bitcoin: The Ultimate Collateral” for free.
How it works
After a simple registration on Firefish, borrowing involves 4 simple steps:
Set your loan terms: Choose your loan amount, interest rate, and loan period to list on our marketplace, or opt for an instant loan at a predefined rate.
Match with an investor: Once your request is listed, we’ll notify you when an investor is found to fund your loan, allowing you to confirm the deal.
Lock your Bitcoin: Upon approval, you will be asked to lock your Bitcoin collateral by sending it to an on-chain escrow address.
Receive funds: The loan amount will be sent directly to your bank account. After you repay by the agreed maturity date, your Bitcoin will be returned to your wallet.
Here's a step-by-step guide to borrowing on Firefish by Bitcoin-educator Cryptosnake:
Why borrow USDT with Firefish specifically?
Most platforms offering Bitcoin-backed loans are custodial. They take possession of your Bitcoin, and with that comes the risk of rehypothecation. Firefish doesn't. Your collateral sits in a non-custodial, verifiable escrow secured by code. Not by us. Not by a third party. You can verify it on-chain at any time.
The second difference is how rates are set. Firefish is a peer-to-peer marketplace for Bitcoin-backed credit, not a lender. There is no company on the other side of your loan. Instead, borrowers and lenders meet directly on the platform and agree on terms.
In practice, this means rates move with real supply and demand. When more lenders are active on the platform looking to deploy capital, competition between them drives rates down for borrowers. When borrower demand is high and lender capital is tighter, rates adjust accordingly. No algorithm. No spread baked in to protect a middleman. Just a market clearing at the rate both sides are willing to accept.
Say you need $20,000 in USDT. You list your request on Firefish and set the rate you're willing to pay. Investors browse the marketplace and choose the loans they want to fund. If your terms are competitive, your loan gets picked up. If not, you adjust. The market decides. No middleman setting the price on your behalf.
Note: To mark the launch of USDT support, we are waiving origination fees on all Instant Loans for a limited time. Fixed rates starting at ~5% p.a.
Instant Loans skip the matching process entirely. Terms are pre-set by the investor and available immediately. If you need USDT against your Bitcoin today, this is the fastest way to get it.
This offer is time-limited and subject to available liquidity.
For Lenders: Put your USDT to work
If you hold USDT and want yield, Firefish now gives you a direct way to deploy it. Fund Bitcoin-backed loans across tenors of 3-24 month on the marketplace and earn fixed returns up to 15% APY, secured by Bitcoin collateral that always exceeds the loan value.
Every loan on Firefish is overcollateralized. That means if a borrower defaults, the collateral is there to cover it. You are not trusting a platform with your capital. You are trusting code and on-chain collateral you can verify yourself. And investments on Firefish attract no fees.
FAQs
Can I borrow USDT without selling my Bitcoin? Yes. On Firefish, you lock your Bitcoin as collateral, receive USDT, and get your Bitcoin back in full once the loan is repaid.
How much USDT can I borrow against my Bitcoin? You can borrow from €1000 in USDT with no maximum, backed entirely by your Bitcoin collateral. Firefish operates at a 50% loan-to-value ratio. If your Bitcoin collateral is worth $40,000, you can borrow up to $20,000 in USDT approximately.
How quickly can I get USDT against my Bitcoin? With Instant Loans, immediately, often time up to 24 hours. Terms are pre-set by the investor and there is no waiting for marketplace matching. On the marketplace, standard loans may be finalized in a few hours depending on the terms and investor interest, others can take several days. Stablecoin (USDC or USDT) transactions are settled in real-time.
Is my Bitcoin safe while locked as collateral? It sits in a non-custodial, on-chain escrow secured by code. Firefish never takes custody of it and you can verify the collateral on-chain at any time.
Can I lend USDT on Firefish? Yes. You can fund Bitcoin-backed loans in USDT and earn fixed returns up to 15% APY with no fees.
How much does Firefish charge for the service? An origination fee of 1.5% (p.a.) of the loan amount is applied to borrowers. The fee is automatically deducted from the Bitcoin collateral during the collateral locking process phase.
In conclusion
With USDT now supported across Standard and Instant Loans, you can access capital globally, in the currency most of the world already uses, without selling your position and without handing your Bitcoin to anyone.
If you're a borrower, your loan is waiting. If you're a lender, lend USDT and earn a yield of up to 15% on Bitcoin-backed loans.
Firefish is opening its Series A to a limited number of strategic partners. If you are interested in supporting the next phase of Bitcoin credit infrastructure, reach out to investors@firefish.io.
About Firefish
Firefish is a global, non-custodial, peer-to-peer marketplace for bitcoin-backed loans. The platform enables users to borrow against Bitcoin collateral without selling their holdings, or to provide liquidity for such loans in fiat currencies and stablecoins.
The Firefish protocol is Bitcoin-native and operates using a 3-of-3 multisig escrow structure with pre-defined on-chain transactions and publicly auditable source code.
This design eliminates rehypothecation and minimizes counterparty risk. Founded by bitcoiners Martin Matejka and Igor Neumann, Firefish is building secure, transparent infrastructure to position Bitcoin as prime collateral in modern financial markets.
Since launch, Firefish has facilitated over $160 million in notional value with 4,500+ BTC collateralized across 27,000 users spanning over 70 countries.
Firefish is backed by Bitcoin mining leader Braiins and VC firm Miton and maintains regulatory compliance including MiCA authorization in the European Union.
