The BTC Now Lender of Record program involves 6 entities with clearly defined roles and responsibilities. Each entity operates within a specific function of the loan lifecycle, ensuring separation of duties and transparent capital flows.
| Entity | Role | Description |
|---|---|---|
| Bank Partner | Lender of Record | Originates loans using bank charter; holds 3–7 business days; sells to Warehouse Fund |
| BTC Now Warehouse Fund LLP | Loan Purchaser & Owner | Delaware fund. Posts underwriting capital; purchases loans; receives payments; holds on balance sheet |
| BTC Now Inc. | Servicer & Platform Operator | Services loans on behalf of Fund; collects payments via Repay.com; manages Kraken/Fireblocks; earns 1.5% annual servicing fee |
| Repay.com | Payment Processor | Collects borrower payments (ACH, debit, eCash); deposits to BTC Now servicer account |
| Kraken | Exchange Partner | Converts USD to BTC; locked price quotes; onboards borrowers |
| Fireblocks Trust | Custody Provider | Segregated wallets per loan; MPC 2-of-3 multi-sig; $750M+ insurance |
The origination flow details how a loan moves from capital posting through bank origination to the Warehouse Fund purchase. The bank never uses its own balance sheet — all loans are funded with pre-posted underwriting capital from the Warehouse Fund.
Key structural point: The Bank Partner never uses its own capital to fund loans. All originations are backed by pre-posted underwriting capital from the Warehouse Fund. The Bank earns fee income with zero balance sheet risk.
Once loan funds are in the borrower's FBO account, the conversion from USD to Bitcoin is executed through Kraken with custody provided by Fireblocks Trust. The borrower initiates the conversion — 100% of the loan amount is converted to BTC.
Once the loan is active, the borrower makes monthly payments through Repay.com. BTC Now Inc. acts as servicer, deducting a 1.5% annual servicing fee before forwarding the remaining payment to the Warehouse Fund as loan owner.
In the event of borrower default, BTC Now Inc. initiates the collateral liquidation process after a 35-day grace/cure period with human review. The Bitcoin collateral is seized from Fireblocks and liquidated via exchange sale. All proceeds flow to the Warehouse Fund as loan owner.
Surplus from liquidation (if any) belongs to the borrower. Deficiency (if any) is collected by BTC Now Inc. on behalf of the Warehouse Fund.
When a borrower completes all scheduled payments, the loan is marked paid in full and the Bitcoin collateral is released to the borrower's personal wallet. The collateral release is the final step in the loan lifecycle.
Collateral release: Upon loan completion, 100% of the Bitcoin collateral is transferred from Fireblocks Trust to the borrower's personal wallet. The borrower owns the full BTC amount regardless of price appreciation during the loan term.
If a loan is cancelled before the BTC conversion is executed, two scenarios govern how funds are returned. The treatment of installments already paid depends on whether the cancellation is voluntary or due to force majeure.
Installments RETAINED by BTC Now Inc.
Any installments already paid by the borrower are retained by BTC Now Inc. as cancellation compensation.
USD loan funds RETURNED — full loan principal returned to the originating funding source.
Installments REFUNDED to borrower.
All installments already paid by the borrower are fully refunded in the event of a qualifying force majeure.
USD loan funds RETURNED — full loan principal returned to the originating funding source.
| Scenario | Installments Paid | USD Loan Funds |
|---|---|---|
| Voluntary Cancellation | Retained by BTC Now Inc. | Returned |
| Force Majeure | Refunded to Borrower | Returned |
Pre-conversion only: These cancellation terms apply only before the BTC conversion is executed. Once Bitcoin has been purchased and custodied at Fireblocks, the standard loan terms (including default and liquidation flows) govern the lifecycle.
The following table provides a comprehensive summary of all capital movements across the BTC Now Lender of Record program, from origination through completion or default.
| Event | From | To | Amount |
|---|---|---|---|
| Capital Posting | Warehouse Fund | Bank Partner | Underwriting capital |
| First Payment | Borrower | BTC Now Inc. | Monthly payment |
| Loan Origination | Bank Partner (posted capital) | FBO Account | Loan amount (USD) |
| Loan Sale | Bank Partner | Warehouse Fund | Loan ownership |
| BTC Conversion | FBO Account | Kraken → Fireblocks | 100% loan amount |
| Monthly Payment | Borrower | BTC Now Inc. | Scheduled payment |
| Servicing Fee | (Retained by) | BTC Now Inc. | 1.5% annual |
| Net Payment | BTC Now Inc. | Warehouse Fund | Payment less fee |
| Loan Completion | Fireblocks | Borrower Wallet | 100% BTC collateral |
| Default Liquidation | Fireblocks → Exchange | Warehouse Fund | USD proceeds |
| Bank Partner Fee | Warehouse Fund | Bank Partner | TBD (negotiated) |
Structural summary: All capital flows are designed so that the Bank Partner operates as a pass-through originator with zero residual credit exposure. The Warehouse Fund bears all credit risk. BTC Now Inc. earns a servicing fee for platform operations. The borrower receives Bitcoin upon completion.