{"id":2670,"date":"2025-03-12T13:25:09","date_gmt":"2025-03-12T13:25:09","guid":{"rendered":"https:\/\/digkrypton.com\/index.php\/2025\/03\/12\/debifi-is-the-premier-noncustodial-p2p-bitcoin-backed-lending-platform-for-institutions\/"},"modified":"2025-03-12T13:25:09","modified_gmt":"2025-03-12T13:25:09","slug":"debifi-is-the-premier-noncustodial-p2p-bitcoin-backed-lending-platform-for-institutions","status":"publish","type":"post","link":"https:\/\/digkrypton.com\/index.php\/2025\/03\/12\/debifi-is-the-premier-noncustodial-p2p-bitcoin-backed-lending-platform-for-institutions\/","title":{"rendered":"Debifi Is The Premier Noncustodial P2P Bitcoin-Backed Lending Platform For Institutions"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

Debifi Is The Premier Noncustodial P2P Bitcoin-Backed Lending Platform For Institutions<\/a><\/p>\n

<\/div>\n

Founder:<\/strong> Max Kei (CEO)<\/p>\n

Date Founded: <\/strong>March 2024<\/p>\n

Location of Headquarters:<\/strong> Lugano, Switzerland<\/p>\n

Website:<\/strong> https:\/\/debifi.com\/<\/a><\/p>\n

Public or Private?<\/strong> Private<\/p>\n

Max Kei is a builder in the Bitcoin P2P space as well as a seasoned banker, which makes him uniquely qualified to create Debifi<\/a>, a noncustodial, bitcoin-backed P2P lending platform that primarily serves institutions.<\/p>\n

Kei\u2019s work in the Bitcoin space began in 2017, when he first contributing to Hodl Hodl, which quickly became a widely used noncustodial P2P trading platform.<\/p>\n

In 2020, he helped the exchange launch Lend at Hodl Hodl<\/a>, the first noncustodial P2P borrowing and lending product in the Bitcoin space.<\/p>\n

The product gained traction in Latin America and Southeast Asia, where it was used to facilitate microloans, while the likes of Preston Pysh (now Strategic Advisor to Debifi) took interest in the product<\/a> and renowned cypherpunk Adam Back also sang its praises<\/a>.<\/p>\n

According to Kei, it\u2019s the high-quality reputation of the team behind Lend at Hodl Hodl, some of whom now work on Debifi, that\u2019s attracting users to Debifi.<\/p>\n

\u201cA lot of lenders and borrowers go to Debifi because they know the team has very extensive experience,\u201d Kei told Bitcoin Magazine.<\/p>\n

\u201cPeople are satisfied, as we\u2019ve been through multiple bear cycles and managed to survive,\u201d he added.<\/p>\n

\u201cNow, we\u2019ve taken the concept of Lend at Hodl Hodl and moved into the institutional space.\u201d<\/p>\n

From Banker To Bitcoiner<\/h2>\n

For 10 years before finding Bitcoin, Kei worked as a private banker.<\/p>\n

He resigned from his position before \u201cgoing full Bitcoin rabbit hole\u201d at the end of 2015, partially as a reaction to an experience he had with one of his clients.<\/p>\n

\u201cA year before I quit, I was sitting in a meeting in the bank office with one of my clients and he was showing me his phone and saying \u2018You know at some point in the future, I\u2019m not going to need you because I have bitcoin,\u2019\u201d recounted Kei.<\/p>\n

The client then proceeded to send $15,000 worth of bitcoin to a contact of his in Brazil, according to Kei, who thought to himself that his client was insane. However, it didn\u2019t take long for Kei to realize that his client wasn\u2019t crazy but, instead, onto something.<\/p>\n

\u201cI started doing my own research, and I quickly realized that Bitcoin is a real thing,\u201d said Kei.<\/p>\n

Kei pivoted to Bitcoin soon after. However, after spending eight years building in the Bitcoin space, he\u2019s come to believe that banks will still have a role in a hyperbitcoinized<\/a> future.<\/p>\n

\u201cBanks aren\u2019t going to go away,\u201d explained Kei.<\/p>\n

\u201cThey will become infrastructure providers for Bitcoin companies, for startups, for everyone. They\u2019re still going to be a backbone,\u201d he added.<\/p>\n

He realized this when banks and other financial institutions began expressing interest in using the Lend at Hodl Hodl product.<\/p>\n

Differentiating With Debifi<\/h2>\n

Within months of launching Lend at Hodl Hodl, institutions reached out to the Hodl Hodl team requesting to use the platform.<\/p>\n

\u201cThey said \u2018Hey, we want to be available for bitcoin lending,\u2019\u201d recalled Kei.<\/p>\n

\u201cBut we didn\u2019t want to mix the world of microlending with the world of institutional lending. We realized we needed to do something different. That\u2019s how the concept of Debifi came into existence,\u201d he added.<\/p>\n

In 2022, Kei began brainstorming Debifi. A year later, they raised money from venture capital firms including Ten31<\/a> and Timechain<\/a> to build a minimum viable product (MVP). By March 2024, Debifi was live.<\/p>\n

The platform has been operating in beta, and the official version will go live at the end of the month. With that said, Kei explained that Debifi is fully functional already.<\/p>\n

\u201cJust because the product is in beta doesn\u2019t mean that it\u2019s not operational \u2014 it\u2019s actually fully operational,\u201d he said.<\/p>\n

And so this brings us to the next question: How exactly does Debifi work?<\/p>\n

How Debifi Works<\/h2>\n

Debifi is both a website and a mobile app, and the two work in tandem.<\/p>\n

\u201cWe have a very unique value proposition is that the mobile app acts as a key storage,\u201d said Kei. \u201cThe mobile app becomes a wallet, storing your private key, but you need to use the website in order to engage in contracts.\u201d<\/p>\n

When you sign a transaction, create an escrow for a loan, or pay off a loan, you use the mobile app to do so.<\/p>\n

Users can also opt to use the COLDCARD<\/a> devices (the Mk4<\/a> or the Q<\/a>) in place of the mobile app, and Kei hopes to add support for other hardware wallets as well.<\/p>\n

\u201cWe want to support Jade from Blockstream, Ledger devices, Trezor devices, the Foundation Passport, and BitBox \u2014 all these good names \u2014 because we want to provide flexibility for our customers,\u201d explained Kei.<\/p>\n

The collateral for Debifi loans is escrowed in a multisignature (multisig) wallet<\/a> featuring four keys, three of which are needed to sign off on transactions.<\/p>\n

\u201cAt Debifi, we have a unique multi-signature setup,\u201d said Kei. \u201cAll loans are held in a 3-out-of-4 multsig wallet, while the standard is 2-out-of-3.\u201d<\/p>\n

The borrower, the lender and Debifi each hold one key, while the fourth is held by AnchorWatch<\/a>. Kei claims that having a fourth key held by a trustworthy institution like AnchorWatch increases security dramatically.<\/p>\n

\u201cWith two institutions holding keys, even if the lender\u2019s and borrower\u2019s keys are somehow compromised, you still need to get one more key,\u201d said Kei. \u201cIf we remove AnchorWatch and go with a simple 2-out-of-3 model, then we might end up in a situation where attackers have two keys and the attacker doesn\u2019t need a third key.\u201d<\/p>\n

Debifi loans are overcollateralized (forced liquidations occur if the value of the bitcoin collateral drops below a certain level, which varies based on the agreement between the borrower and lender) and the average APR is just above 10%.<\/p>\n

Kei explained that his team\u2019s research has shown that many are willing to pay the higher APR for noncustodial loans.<\/p>\n

\u201cA while back, we talked with 300 Bitcoiners and we gave them a very simple option: You can borrow custodially at an 8% interest rate or you can borrow noncustodially at 11% or 12% interest rate,\u201d he explained. \u201c91% of people said that they would prefer to hold their keys.\u201d<\/p>\n

Users can take out loans up to $1 million via the platform and the loan durations range from three to 12 months. As of April, this will expand to 24 months.<\/p>\n

Users can borrow in U.S. dollar stablecoins, U.S. dollars, euros, and Swiss francs, and Debifi is working on adding British pounds, Brazilian reals, and Mexican pesos to that list.<\/p>\n

Debifi monetizes through origination fees, which it takes from the collateral put in escrow, and it has a dispute resolution team that helps to resolve loan repayment issues and other problems.<\/p>\n

What\u2019s Next For Debifi<\/h2>\n

As mentioned, Debifi just brought on Preston Pysh as a strategic advisor<\/a> in efforts to help the company with networking and publicity. Pysh will also provide advice on how to improve Debifi\u2019s product.<\/p>\n

The company also plans to partner with Blockstream\u2019s Asset Management (BAM) division<\/a>. BAM will utilize Debifi as a technical provider for institutions looking to offer bitcoin-backed lending products.<\/p>\n

Beyond that, Kei noted that a number of other important partnerships are in the pipeline as well, and that Debifi will announce them in the coming months.<\/p>\n

And he concluded with a pitch to all the institutions out there who might be interested in working with Debifi.<\/p>\n

\u201cDebifi helps you plug and play in the bitcoin-backed lending world as an institution,\u201d said Kei.<\/p>\n

\u201cWe provide you with all the necessary infrastructure. We\u2019ll onboard you, and we\u2019ll guide you with private support. We\u2019ll give you all the necessary tools,\u201d he added.<\/p>\n

\u201cEffectively, we\u2019re going to be like a one-stop shop. Not only do you not have to build this stuff because it\u2019s already there, we bring you the customers, which we allow you to communicate with directly. And the best part is that as a liquidity provider, you don\u2019t pay us anything. Zero.\u201d<\/p>\n

It\u2019s hard not to argue that Kei and his team are onto something here.<\/p>\n\n

This post Debifi Is The Premier Noncustodial P2P Bitcoin-Backed Lending Platform For Institutions<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Frank Corva<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine Debifi Is The Premier Noncustodial P2P Bitcoin-Backed Lending Platform For Institutions Founder: Max Kei (CEO) Date Founded: March 2024 Location of Headquarters: Lugano, Switzerland Website: https:\/\/debifi.com\/ Public or Private? Private Max Kei is a builder in the Bitcoin P2P space as well as a seasoned banker, which makes him uniquely qualified to create […]<\/p>\n","protected":false},"author":0,"featured_media":2671,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-2670","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/2670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=2670"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/2670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/2671"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=2670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=2670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=2670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}