DALLAS— BankSocial said it has launched a platform that allows banks and credit unions to make loans secured by cryptocurrency, with an unnamed U.S. financial institution originating nearly $1 million in loans during its first 48 hours.
The Dallas-based financial technology company said its Digital Asset-Backed Loans platform is operating at a multibillion-dollar institution. BankSocial plans to identify the launch partner and announce additional participating institutions during the fourth quarter of 2026.
The platform allows borrowers to pledge digital assets as collateral and apply for, receive and repay loans through their financial institution’s existing mobile and online banking services, according to the company. The participating bank or credit union originates, owns and services the loans.
Institutions can choose from bitcoin, ether, solana, chainlink, hedera, XRP and more than 250 other digital assets when determining eligible collateral, BankSocial said.
“Nearly $1 million in loans in 48 hours tells us people want this from the institution they already trust,” said John Wingate, BankSocial’s founder and CEO.
Lender Controls Terms
BankSocial said each participating institution establishes its own underwriting criteria, interest rates, loan-to-value limits, eligible collateral, and margin call and liquidation thresholds.
The company supplies technology connecting the institution’s core banking system, digital banking services and custodian. Loan origination, general ledger postings and account synchronization are automated, according to the release.
The platform monitors collateral values in real time and issues alerts when established thresholds are crossed, BankSocial said. Employees can monitor loans through the company’s Nuron portal, while borrowers access the service through its Prospera wealth management interface.
No monthly payments are required, according to BankSocial. Borrowers can make payments through automatic transfers, online or mobile banking, automated clearinghouse transfers or branches.
Collateral Carries Risks
BankSocial said collateral is held by regulated custodians that maintain insurance coverage, subject to policy terms, limits and exclusions.
However, digital assets pledged as collateral are not insured by the National Credit Union Administration or Federal Deposit Insurance Corp. Custody insurance does not cover declines in market value, the company said.
Cryptocurrency price volatility can trigger margin calls or liquidation under an institution’s lending policies. Loan approval remains subject to underwriting standards and collateral eligibility.
BankSocial said it plans to expand eligible collateral and views the platform as a potential foundation for lending against tokenized assets, including securities, deposits and funds. Those plans remain subject to regulatory requirements, participating institutions’ decisions and other risks, the company said.
