Bitcoin-backed loans are often talked about with more speculation than substance. But thanks to our platform data at Vield — one of Australia's leading crypto lending providers — we can now show what’s actually happening behind the scenes. With hundreds of loans issued and zero defaults, our statistics offer a rare look into how Australians are using crypto-backed finance in 2025.
“This data shows that Bitcoin-backed loans are no longer a fringe concept—they’re being used responsibly, strategically, and at scale. What’s most telling is the 0% default rate and the fact that nearly half of our borrowers come back. That kind of behaviour reflects a maturing space and a real demand for alternatives to traditional finance.”
— Johnny Phan, CEO of Vield
Are Bitcoin-Backed Loans Risky? Our Data Suggests Otherwise
A common concern with crypto-backed loans is volatility. But our internal statistics and borrower data paint a more conservative, lower-risk picture:
- Average Loan-to-Value Ratio (LVR): 42%
Borrowers are over-collateralising, keeping risk exposure low. - Loan Default Rate: 0%
Since launch, we have not recorded a single loan default. - Repeat Borrowers: 45%
Nearly half of our users return for a second loan — a sign of trust and satisfaction. - Average Loan Term: 8 months
These are not flash-in-the-pan loans. They’re structured and medium-term.
This data challenges the assumption that crypto loans attract high-risk behaviour. In our experience, the opposite is true.
“The numbers speak for themselves. Australians are using Bitcoin as collateral for high-value, low-risk borrowing. With an average loan size of $310,000 and a conservative 42% loan-to-value ratio, our data shows that this is about smart financial planning, not speculation.”
— Sam Teoh, CFO of Vield
What Are Australians Using Bitcoin Loans For? A Breakdown by Use Case
There’s a common misconception that crypto loans are used for short-term personal spending. Our loan statistics show a very different picture:
- Investment: 72%
- Business expenses: 10%
- Home improvement: 7%
- Debt consolidation: 5%
- General expense: 5%
- Personal expense and investment: 1%
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Australians are using Bitcoin as an asset to unlock liquidity for high-intent, forward-focused goals. It's less about consumption, more about capital allocation.
Capital As Priority: Why Most Bitcoin Loans Are Being Used for Investment, Not Spending
When 7 out of 10 loans are directed toward investments, it signals something important: borrowers see Bitcoin as usable collateral, not just an idle asset. It’s no longer about HODLing or speculative selling — it’s about activating value while keeping ownership. The data shows borrowers are seeking to grow wealth, not just fund lifestyle expenses.
Where Are Australians Borrowing Against Bitcoin? State-by-State Loan Trends
Our borrower statistics span across Australia, but most activity is centred in:
- NSW: 68%
- VIC: 16%
- QLD: 7%
- SA: 7%
- TAS: 2%
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The dominance in NSW may reflect higher crypto adoption, more financial activity, or broader access to capital education. But the national footprint suggests crypto lending is spreading beyond early adopters.
An Emerging Asset Class
What this data reveals is bigger than our platform. It hints at the mainstreaming of Bitcoin-backed lending as a legitimate financial tool. With average loan sizes sitting at $310,000 AUD, borrowers aren’t playing small. They’re using Bitcoin to access serious capital — responsibly.
If borrower statistics continue to skew conservative, this niche could evolve into an accepted lending vertical alongside traditional margin loans and home equity lending.
How This Data Can Help Policymakers
With regulatory clarity still evolving, our zero-default track record and risk-conscious user base offer valuable signals:
- Volatility can be managed with proper LVR models and custody protocols.
- Borrowers are not treating crypto as funny money — they’re making calculated financial decisions.
- Repeat usage implies platform trust and long-term intent.
Rather than react to fear, policymakers could look to statistics like ours when considering how to regulate or support the future of alternative finance.
Our internal loan statistics open a new window into how Australians are interacting with Bitcoin — not just as investors, but as borrowers. With high loan sizes, conservative borrowing habits, and zero defaults, the message is clear:
Bitcoin-backed loans are here, they’re working, and they’re being used for more than most think.
For journalists, analysts, or policymakers looking for further insights, we welcome contact and collaboration. This is just the start of what our data can reveal.
