Bitcoin is the fastest-growing asset class in history with a $2.2 trillion market capitalization — yet no bank-originated consumer credit product exists for acquiring it. Every other major asset class (real estate, automobiles, equities) has institutional financing. Bitcoin has none.
BTC Now is building the Affirm/Klarna model for Bitcoin — installment purchase plans that let consumers acquire Bitcoin through fixed monthly payments, originated through a licensed bank partner. The bank earns fee revenue with zero balance sheet exposure.
Key insight: The same Lender of Record model that powers $140B+ in annual Affirm, Klarna, and BNPL originations — applied to a $2.2T asset class with zero competition.
The program follows the proven Lender of Record structure used by Affirm, Klarna, and other fintech lending platforms. The bank originates loans using its existing consumer lending licenses. BTC Now handles everything else.
BTC Now posts underwriting capital with the bank before any loans are originated. The bank uses this posted capital to fund loans — never its own balance sheet. After the seasoning period, BTC Now purchases every loan note, transferring all credit risk.
BTC Now uses a 5-tier credit structure with conservative underwriting standards. All borrowers must pass 11 non-negotiable eligibility requirements including FICO minimums, DTI caps, income verification, and AML/KYC screening.
| Tier | FICO Range | APR | Max DTI |
|---|---|---|---|
| Tier 1 | 750+ | 10% | 65% |
| Tier 2 | 700–749 | 12% | 60% |
| Tier 3 | 670–699 | 14% | 60% |
| Tier 4 | 640–669 | 16% | 55% |
| Tier 5 | 620–639 | 18% | 55% |
All APR tiers comply with the Military Lending Act (MLA) 36% MAPR cap. Credit bureau reporting to all three bureaus via Metro 2 format through Bloom Credit. Two-stage credit pull: soft pull at application, hard pull only after borrower acceptance.
The Bitcoin Installment Purchase Plan offers fixed monthly payments that never change regardless of Bitcoin price movements. Each loan is fully collateralized with Bitcoin held in a dedicated, segregated wallet — never pooled or commingled.
| Amount | 12 Month | 60 Month | 120 Month |
|---|---|---|---|
| 0.25 BTC | $2,256 | $595 | $403 |
| 0.5 BTC | $4,513 | $1,190 | $807 |
| 0.75 BTC | $6,769 | $1,784 | $1,210 |
| 1 BTC | $9,026 | $2,379 | $1,613 |
Non-recourse structure protects all parties. In the event of default, the lender seizes the Bitcoin collateral but will never pursue a deficiency judgment, engage debt collectors, or initiate legal proceedings against the borrower.
BTC Now provides the complete technology stack — the bank provides only the lending license. The platform is built on a 4-layer architecture with institutional-grade infrastructure at every level.
| Layer | Components |
|---|---|
| Customer | BTC Now Consumer Portal, Web + Mobile, 10-Step Digital Onboarding, 5-Min KYC |
| BTC Now Integration | Fireblocks API (Custody), Exchange API (BTC), USDC Payments, Webhook Engine |
| LoanPro Backend | Loan Servicing, Payment Processing, Workflow Engine, Reporting & Analytics |
| Third-Party | Repay (ACH/Card), Bloom Credit (Bureau Reporting), Plaid (KYC/Banking) |
The LoanPro servicing platform manages 33 functional requirements covering loan origination, compliance, payment processing, credit reporting, and default workflows. All KYC/AML/OFAC screening is automated through Plaid with code-level enforcement.
The program involves 6 entities with clearly defined roles and responsibilities. Capital flows are structured to ensure the bank never bears credit risk beyond the 3-7 day seasoning period.
| Entity | Role |
|---|---|
| Bank (LOR) | Originates loans using bank charter; holds 3-7 days; sells to Warehouse Fund |
| BTC Now Warehouse Fund | Posts underwriting capital; purchases loans; receives payments; holds on balance sheet |
| BTC Now Inc. | Servicer & platform operator; collects payments; manages custody; earns 1.5% servicing fee |
| Repay.com | Payment processor — ACH, debit, eCash collection |
| Kraken | Exchange partner — converts USD to BTC; locked price quotes |
| Fireblocks Trust | Custody — segregated wallets, MPC 2-of-3 multi-sig, $750M+ insurance |
On a $100,000 loan balance, the monthly servicing fee is $125 ($100K × 1.5% ÷ 12). BTC Now Inc. retains this fee for platform operations, servicing, and collections. The remainder flows to the Warehouse Fund as the loan owner.
The program is designed to eliminate virtually all risk for the bank partner. The bank operates as a pass-through originator with zero residual credit exposure.
Non-recourse structure protects all parties — Loans are purchased from bank balance sheet within days of seasoning. The bank retains no residual exposure to credit defaults, Bitcoin price movements, or borrower delinquency.
The bank earns fee revenue on every origination with zero balance sheet risk. BTC Now drives all customer acquisition — zero marketing burden on the bank partner.
An estimated 50 million Americans already own cryptocurrency and fit the BTC Now credit profile (FICO 580+, DTI ≤50%). This is the addressable market — consumers who are already crypto-native and underserved by traditional bank lending products for digital asset acquisition.
These projections are conservative. BTC Now has established a closed-end fund capped at $1B in subscriptions to warehouse originations. Year 1 volume is deliberately constrained — securitization of Bitcoin-collateralized consumer installment plans requires an estimated 6–12 months of loan seasoning before rating agencies and institutional buyers will participate. Volume scales significantly in Year 2 once the securitization framework is proven and capital recycling begins.
| Period | Monthly Volume | Cumulative |
|---|---|---|
| Months 1–3 | $25M total | $25M |
| Months 3–6 | $25M/month | $100M |
| Months 6–12 | $50M/month | $400M |
| Year 2+ | $100M+/month | $1B+ cumulative |
Year 2 inflection point: Once 6–12 months of loan performance data demonstrates credit quality and the securitization framework is established, capital recycling through ABS issuance unlocks dramatically higher origination capacity beyond the initial $1B fund.
When borrowers exit early (typically because Bitcoin has appreciated significantly), a yield maintenance fee compensates the lender for lost future interest. This accelerates annualized returns dramatically.
| Exit Month | Remaining Balance | YM Fee | Annualized Return |
|---|---|---|---|
| Month 6 | $68,450 | $47,800 | ~95% |
| Month 12 | $66,800 | $45,200 | ~60% |
| Month 24 | $63,100 | $39,800 | ~32% |
| Month 36 | $58,900 | $33,900 | ~24% |
| Month 60 | $48,600 | $21,000 | ~15% |
| Month 120 | $0 | $0 | ~15% |
Based on a $70,000 loan at 15% APR. Treasury discount rate assumed at 4.5%. Yield maintenance is waived on underwater exits (where Bitcoin has declined below the outstanding balance).
BTC Now has assembled a best-in-class partner ecosystem covering every aspect of the loan lifecycle from KYC through custody.
| Partner | Function |
|---|---|
| Plaid | KYC/AML/Sanctions screening + bank data for underwriting |
| LoanPro | Loan origination, compliance, servicing, payment management |
| Kraken | Bitcoin purchasing & exchange connectivity |
| Fireblocks Trust | Secure Bitcoin custody — insured, segregated wallets |
| Repay | ACH, debit, credit card payment processing |
| Bloom Credit | Credit bureau reporting — Metro 2 format |
| BTC Now Inc. | Underwriting liquidity & loan note purchasing |
Baker Donelson — Anastasia Stull & R. Colgate Selden — Banking & Regulatory Compliance. Responsible for credit policy design, loan agreement drafting, and regulatory engagement strategy.
Core team has executed together 10–15 years across regulated funds, sovereign debt, and trading infrastructure.
BTC Now is seeking a bank partner that can issue consumer loans in all 50 U.S. states under existing licenses. The ideal partner is willing to engage regulators and dedicate a small internal team to the program.
For detailed technical materials: Credit Box Parameters, Flow of Funds, LoanPro Specification, and Loan Summary are available as separate documents. View all materials →
marc@btcnow.com