Lantern Finance

Lantern Finance: dollar loans with cryptocurrency as collateral

Lantern Finance is a lending platform that allows you to obtain dollars using cryptocurrency as collateral, without needing to sell it. The company presents itself as an alternative to liquidating digital assets to cover liquidity needs, such as paying taxes, buying a home, or investing in a business. Its proposition relies on insured custody, no credit checks, and a simplified application process.

How the loans work

The process begins with creating an account, which according to the company takes minutes. Then, the client transfers their cryptocurrency as collateral to BitGo's insured cold storage. Once the collateral is deposited, they receive the dollars in their bank account. The company states that it does not perform credit checks or require complex paperwork, and that the loan can reach up to 50% of the portfolio value. The site mentions a 72-hour grace period before a possible liquidation.

The platform includes a loan simulator that shows examples with a maximum loan-to-value (LTV) ratio of 40%, an annual percentage rate (APR) of 11%, and a 12-month term. It also notes that rates start from 8% for select assets and that there are no hidden fees. The company states that collateral is never lent to third parties, meaning no rehypothecation, and that assets are held in cold storage or native staking.

Assets accepted as collateral

Lantern Finance accepts 13 cryptocurrencies as collateral:

• XRP
• Ethereum (ETH)
• Solana (SOL)
• Bitcoin (BTC)
• Litecoin (LTC)
• Dogecoin (DOGE)
• Stellar (XLM)
• Cardano (ADA)
• Hedera (HBAR)
• Bitcoin Cash (BCH)
• Chainlink (LINK)
• Sui (SUI)
• XDC Network (XDC)

Security and regulatory compliance

The company highlights a security-focused approach. Asset custody is handled by BitGo, a US-based, industry-qualified cryptocurrency custodian. According to published information, custodied assets are insured up to $250 million and kept in cold storage, offline. Lantern Finance describes itself as a Money Services Business (MSB) registered with FinCEN, with KYC and AML processes implemented to comply with applicable regulations.

Client profile and use cases

The platform is aimed at those who need liquidity without selling their cryptocurrency. Among the use cases it mentions are paying taxes, buying a home, and investing in a business. The company emphasizes that loans are not taxable events, so they allow deferring tax payment until the client decides to sell their cryptocurrency. It also offers the possibility to expand existing loans and process them quickly via stablecoins.

Customer support

Lantern Finance states that each client has direct access to their team, with phone and email support. Support hours are Monday to Friday, 6:00 a.m. to 6:00 p.m. (Pacific Time), with after-hours availability as needed. The company also offers a loan calculator, an FAQ section, and a newsletter about new supported assets and product changes.

Origin and background

According to statements from one of its co-founders, Lantern Finance was born as a result of the collapse of other cryptocurrency lenders, such as BlockFi and Celsius, in which both founders had assets frozen. The company presents itself as a response to that experience, with emphasis on transparency and collateral security. The website has a copyright from 2023 to 2026 and the firm operates as Lantern Finance, Inc.