Verified against lantern.finance on 6 Sep 2026. Terms change; confirm before borrowing.
How Lantern works
Lantern Finance is a US-based, FinCEN-registered lender offering fixed-rate crypto-backed loans. You borrow up to 50% of your crypto’s value at a flat 8% for 12 months; collateral is held by BitGo, a qualified US custodian, in insured cold storage. When the loan is repaid, your collateral is returned. Lantern supports Bitcoin plus a range of other assets, with a low $1,000 minimum and no prepayment penalty.
Rates & fees
Lantern’s headline is simplicity: a flat 8% fixed rate for every borrower, regardless of loan size — among the lowest CeFi rates available. There is a 2% upfront fee (taken from loan proceeds at funding) and no size tiers, no liquidation fees, and no prepayment penalties. Interest is paid over the 12-month term.
LTV & liquidation
Lantern caps initial LTV at a conservative 50%. If your LTV rises to 65% it issues a margin call and gives you a 72-hour grace period to top up or pay down before any action — unusually borrower-friendly. Liquidation only occurs at 75% LTV, and even then Lantern says it sells just enough collateral to restore a healthy ratio, with no liquidation fee.
Custody & safety — why we rate Lantern Medium relative risk
Source: Lantern custody & BitGo FAQ ↗
Lantern custodies collateral with BitGo, a qualified US custodian that holds assets 1:1 (no lending or trading of client assets) with $250M of insurance, and Lantern is a FinCEN-registered MSB with full KYC/AML. Combined with a conservative 50% LTV and a 72-hour grace period, the risk controls are strong. We rate it Medium rather than Lower only because it is brand-new (launched 2026) and has no multi-year, multi-cycle track record yet. See the risk methodology.
What a $100,000 Lantern loan costs
At 8% flat, Lantern is among the cheapest fixed-rate CeFi options. Figures illustrative.
Pros & cons
Strengths
- Market-low 8% flat rate (all loan sizes)
- Conservative 50% maximum LTV
- 72-hour grace period before liquidation
- No liquidation or prepayment fees
- Insured BitGo qualified custody (1:1, no rehypothecation)
- Low $1,000 minimum
Trade-offs
- Brand-new operator (no track record through a downturn)
- US borrowers only
- 50% max LTV limits borrowing power
- Smaller company
Who Lantern is best for
Lantern suits borrowers who want the lowest fixed rate with conservative, borrower-friendly risk controls and don’t mind a newer name. If you want a longer track record, compare Strike or Ledn; for the strongest custody model, see Unchained.
FAQ
What is Lantern Finance's interest rate?
A flat 8% fixed rate for every borrower, regardless of loan size — one of the lowest CeFi rates available — on a 12-month term.
How is my Bitcoin secured at Lantern?
By BitGo, a qualified US custodian, in insured cold storage held 1:1 (never lent or traded), with $250M of insurance.
When does Lantern liquidate?
A margin call is issued at 65% LTV with a 72-hour grace period; liquidation only happens at 75% LTV, with no liquidation fee.
Is Lantern safe?
It uses BitGo qualified custody, a conservative 50% LTV and a 72-hour grace period, and is a FinCEN-registered MSB. We rate it Medium relative risk mainly because it is brand-new. No loan is risk-free.
See Lantern next to every other lender
Live rates, LTV, liquidation thresholds, custody, and minimums for every lender we track in one verified table.
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