Bitcoin collateralized lending platform Strike has reached $10 million in loans just two days after its launch.

As Bitcoin (BTC) becomes more mainstream, the market for lending against BTC is expanding rapidly. On Wednesday, May 7, Jack Mallers, the founder and CEO of Zap, Strike’s parent company, announced that the platform has issued over $10 million in loans just days after its launch.

Strike launched on May 6, allowing Bitcoin holders to use their BTC as collateral for loans. This gives users the ability to access liquidity without needing to sell their assets. According to Mallers, the platform aims to help Bitcoin evolve into a more mature investment product, with lending being a key component of that process.

Bitcoin lending rates are still in double digits: Strike

In a video posted on X, Mallers acknowledged that Strike’s lending rates remain high. The platform currently offers a 12% APR for monthly payments and a 13% APR for payments at maturity, well above traditional lending rates.

Mallers explained that these elevated rates reflect the nascency of the Bitcoin lending market. Major lenders, he said, still don’t fully understand Bitcoin. Nonetheless, he expressed a strong commitment to reducing Strike’s lending rates into the single digits over time.

Despite the current rates, Mallers believes Bitcoin-backed loans remain compelling for certain users, including himself. For example, mortgages require borrowers to own real estate, which typically sees a compound annual growth rate (CAGR) of around 3%. In contrast, Bitcoin has posted a CAGR of 30–50%, making it potentially more advantageous for long-term holders to borrow against BTC rather than sell it.

Mallers also clarified that Strike is not a DeFi company. Instead, it operates as a financial institution that collaborates with other traditional financial partners. He noted that while he was unable to reveal those partners at this time, Strike is positioned to bridge Bitcoin and institutional finance.