Lendasat: Early Progress in Bitcoin Self-Custody Lending, Funding Information in Question

Bitcoin Lending Without Giving Up Private Keys

Lendasat is a lending protocol deployed on Ark Labs’ Arkade Layer 2. Its core idea is: use BTC as collateral for loans, but always keep the assets under the borrower’s control. No need to sell coins, which helps avoid potential capital gains taxes while maintaining exposure to BTC price movements. The underlying infrastructure integrates Lightning Network, multi-signature wallets, and DLC VTXOs (Virtual Transaction Outputs), executing contract logic off-chain.

The team is distributed across multiple countries, with developer Marius frequently appearing in progress updates. The product began public testing at the end of 2024, following a small internal beta.

Based on current data, as an early-stage product, it performs relatively stably: during the public beta, over 2,400 users, with no reports of fund losses or security incidents. In the December 2024 internal testing phase, the platform processed hundreds of loans; some loans were issued via virtual debit cards, others in USDC (Polygon).

Technically, the design references Ark protocol: by pre-signing outputs to achieve transaction “virtualization,” enabling faster and more programmable operations without modifying the Bitcoin mainnet; users retain full control of their private keys. Normal repayments involve state-cooperative rollbacks; in case of issues, pre-set protective mechanisms activate automatically.

• Loan info is on-chain and can be tracked, including LTV.
• In partnership with Moon, supports disbursing USD/EUR via virtual debit cards, as well as stablecoins.
• User feedback mainly concerns account opening and dark mode (still in scheduling).
• Future development depends directly on the adoption of Arkade and other Bitcoin L2 solutions.

Unverified Funding Announcement

On March 18, 2026, Lendasat announced completing a Pre-Seed funding round, listing investors including Fulgur Ventures, Initial Capital, and Ark Labs. I reviewed media reports, investor portfolios, and official channels, but found no public confirmation; the funding amount, terms, and lead investors remain undisclosed.

For early-stage Web3 projects, such situations are common: private placements often close before public disclosure. However, this makes it difficult to assess Lendasat’s financial reserves or the pace of expansion and iteration.

Strategically, Fulgur Ventures has a long-term focus on Bitcoin ecosystem investments, and Ark Labs is a provider of infrastructure that Lendasat depends on—these connections are logical. But whether “this funding round actually took place” remains unverified by independent evidence.

On the other hand, usage data and user feedback during testing indicate genuine demand: users appreciate the interface and current stability. If Bitcoin financial layers continue to expand, non-custodial lending that can directly settle into stablecoins or fiat could fill a niche. However, the opaque funding details introduce uncertainty about future momentum.

In short: the product is usable and has users; the undisclosed funding info is not surprising at this stage but does limit external assessment of execution and pace.

Key Points to Watch

• Core issues:
  • Whether the product-market fit depends on actual user growth and capital retention on Arkade L2.
  • Public confirmation of funding could accelerate hiring and development.
• Execution concerns:
  • Can multi-channel loan disbursement (stablecoins/fiat cards) operate stably and compliantly?
  • How effective are off-chain liquidation mechanisms under extreme market conditions compared to custodial ones?
  • Security: Can multi-signature, DLC VTXOs, and off-chain state machines recover from extreme scenarios?
• External factors:
  • Adoption and liquidity migration in Bitcoin L2 solutions.
  • Stability of upstream infrastructure (Ark Labs, Lightning, card issuers/payment channels) and policy environment.

Comparing Non-Custodial vs Custodial Lending

Summary: This approach is still in early stages. The most suitable participants are builders, teams, and early strategic funds positioning for increasing Bitcoin L2 adoption. Pure traders and long-term holders should monitor Arkade L2’s actual activity and liquidity migration. Until funding is confirmed and liquidation mechanisms withstand extreme market conditions, heavy positions are not recommended.