Borrow Up to 1 Billion Yen Without Selling Bitcoin: Insights into the Design Philosophy of the Collateral Loan "CRYL"

Using Bitcoin (BTC) as collateral, users can borrow Japanese yen without selling it. The cryptocurrency collateral loan "CRYL" started its services domestically on July 9, allowing loans ranging from 1 million yen to a maximum of 1 billion yen.

Operated by CRYL Co., Ltd., which is a group company of J-CAM Co., Ltd. that specializes in cryptocurrency lending "BitLending," this service combines lending cryptocurrency to earn returns with borrowing against cryptocurrency as collateral.

In Japan, collateral loans are still not common. The challenge is how to establish a third option of "utilizing without selling" for cryptocurrencies, which have often been polarized into "holding or selling." We spoke with Yuki Danbayashi, who leads service development at the company, which participated as a title sponsor at WebX2026.

Overview of the "CRYL" Service

Collateral Asset
Only Bitcoin (BTC)
Loan Amount
1 million yen to 1 billion yen
Borrowing Interest Rate
Annual rate of 3.5% to 7.0%
Collateral Ratio
40% to 60% (selectable in 5% increments)
Repayment Method
Lump-sum repayment of principal and interest
Repayment Period
1 year (rollover available)
Service Launch
July 9, 2026

Editor’s Note: Currently, profits from cryptocurrency sales are subject to comprehensive taxation as miscellaneous income, with a maximum tax rate of 55%. Following the transition to the Financial Instruments and Exchange Act, a separate taxation system (20% tax rate) is expected to be applied starting in 2028.

Key Factors for Entering the Collateral Loan Market

What was the most decisive factor in expanding from lending to "deposit and borrow" collateral loans?
At the core is the desire to provide comprehensive financial services in the cryptocurrency industry through service diversification. While there are many companies under the same banner, we have built a considerable scale in cryptocurrency lending domestically, which gives us a competitive advantage.

Banks offer a range of products, including time deposits, investment trusts, loans, and insurance. We believe we have already achieved "yield generation" through BitLending. However, other areas, including loans, are still underdeveloped.

Among these, cryptocurrency collateral loans had a low barrier to entry and allowed us to leverage our expertise.

Additionally, there is significant demand for cryptocurrency collateral loans overseas, making it a valuable market to target. Combining services that lend cryptocurrency for yield with services that obtain fiat currency using cryptocurrency as collateral makes sense in terms of compatibility.

Taxation is also a major factor. It is expected that separate taxation will be applied by at least 2028, but conversely, it means that comprehensive taxation as miscellaneous income is currently in effect.

There are individuals who "do not want to sell now" or may face even higher tax rates after the application of separate taxation. By launching the service before the application of separate taxation, we aim to capture the demand of those who "do not want to sell but want to secure liquidity."

I believe the significance of starting at this timing is substantial.

Challenges in Obtaining a Money Lending License

Were there any difficulties or hurdles in obtaining registration for money lending?
First, it was very challenging to build the overall picture of the service, including the lending conditions presented to customers, and the underlying mechanisms. Many of our team members come from financial institutions, but this time we are dealing with cryptocurrency as collateral. We constructed the scheme with utmost care.

We are not the first to offer cryptocurrency collateral loans in Japan; we launched in a competitive environment. Therefore, it was necessary to design a service that could offer conditions that would not lose to competitors.

Considering our internal cost structure, we worked hard to refine the conditions to be as advantageous as possible.

Expanding Options Beyond Selling

How does CRYL expand the options for users to utilize their assets?
The biggest change is that we have increased options beyond "selling."

In Japan, there are not many ways to utilize cryptocurrency after purchase. While cryptocurrencies are labeled as "cryptocurrency" or "virtual currency," most people living in Japan do not enjoy situations where they are more convenient than Japanese yen. The related rules are also strict.

Some may lend on exchanges while holding, and others may engage in staking. The actual options have been limited to that extent.

In contrast, overseas, there are many options for utilizing assets after holding, including fund services and DeFi. Collateral loans are one of those options, which have been almost nonexistent in Japan.

Essentially, there was only the option to "buy and sell," but we can now present alternatives beyond selling. I believe this is a significant use case.

Simple and Immediate Borrowing Experience

What innovations are you implementing to make it accessible to the general public?
As it falls under the framework of money lending, there are rules that must be adhered to. Within that framework, we want to ensure that users can borrow immediately when they want to. We value that user experience.

One of the factors that allowed us to grow BitLending to a certain scale was the simplicity of the flow from account registration to lending cryptocurrency and earning returns.

If the process becomes cumbersome, customers will leave. The basic principle is to keep it simple and allow for easy borrowing. We will maintain that design.

Expected Users and Loan Range

Among the range from 1 million yen to a maximum of 1 billion yen, which demographic do you expect to use it the most?
Since we have just launched, there are still aspects we cannot fully gauge, but we initially want to meet the funding needs of individuals in 1 million yen increments.

For amounts like 100,000 yen or 200,000 yen, there are many easy borrowing options available, such as card loans. However, there are not many places where one can borrow 1 million, 2 million, or 3 million yen at the interest rates we offer.

We have designed the service to cater to needs such as purchasing a car, home renovations, or simply "needing a little more liquidity," and we hope to attract that demographic.

Strengths Not Found in Banks and Integration of Two Services

What are CRYL's strengths compared to bank loans?
One strength is that under the framework of money lending, individuals can borrow Japanese yen relatively simply. While there are various regulations, including total volume regulations, it is currently difficult for banks to respond to those who hold cryptocurrency and have no other means of utilization.

In that regard, we possess the know-how for handling cryptocurrency that we have cultivated through BitLending. Customers can confidently deposit their collateral. I believe this is a clear advantage that banks do not have.

Design Philosophy of Collateral Ratio and Loan Range

What are CRYL's design principles regarding collateral ratios, interest rates, and liquidation levels?
I believe the collateral ratio, or LTV, has been set at a very competitive level. From what I see, while there are cases overseas with high ratios of 60% or even 70%, the average is around 50%. Domestic cryptocurrency collateral services are at a similar level.

In Japan, there is strong demand for stock collateral loans, and we have been able to offer collateral ratios that are not inferior to that. I consider this a significant strength and a selling point.

We also want to accommodate the monetary aspect. In addition to catering to small needs of "a little short," the range of up to 1 billion yen can withstand significant funding needs as long as the application passes. In fact, when our service is featured on social media like X, there seems to be a lot of attention on this monetary aspect.

Uniqueness as a Japan-Originated Service

What uniqueness do you want to create as a service originating from Japan, rather than importing an overseas model?
To be frank, this is a challenging area. It is difficult to express uniqueness in collateral loans, and the competition inevitably boils down to interest rates, liquidation lines, and collateral ratios. Simply competing in those areas will eventually exhaust the stamina of the operators.

That is why we want to expand our services in other areas and express uniqueness. For example, a service design that allows customers to avoid worrying too much about forced liquidation. While we have not yet realized this, we want to incorporate customer needs into the design and connect it to uniqueness.

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