Coinbase Institutional Clients Drive Record Bitcoin-Backed Lending Growth as Two Prime Surpasses $2.55 Billion Milestone
Institutional cryptocurrency adoption reaches new heights as Two Prime Lending Limited reports unprecedented growth in Bitcoin-secured lending, with Q3 2025 seeing $827 million in new loans. The Asheville-based firm, operating as a subsidiary of Two Prime Inc., has now facilitated over $2.55 billion in crypto-collateralized credit since its March 2024 launch, serving major institutional clients including CleanSpark, Hut 8, and Flowdesk. This remarkable achievement underscores the growing institutional confidence in Bitcoin as collateral and reflects the expanding infrastructure supporting digital asset utilization in traditional finance. The record-breaking quarter demonstrates how established financial institutions and cryptocurrency companies are increasingly leveraging Bitcoin's value for strategic financing, with platforms like Coinbase playing a crucial role in facilitating these sophisticated financial instruments. The surge in Bitcoin-backed lending activity signals a maturation of cryptocurrency markets and highlights the evolving role of digital assets within corporate treasury management and institutional investment strategies. This development represents a significant milestone in the integration of cryptocurrency into mainstream financial services, showcasing how Bitcoin is being utilized not just as a speculative asset but as functional collateral for substantial business operations and expansion initiatives.
Two Prime Surpasses $2.55 Billion in Bitcoin-Backed Loans Amid Institutional Demand Surge
Two Prime Lending Limited reported a record $827 million in Bitcoin-secured loans for Q3 2025, propelling its cumulative issuance beyond $2.55 billion since its March 2024 launch. The Asheville-based firm, a subsidiary of Two Prime Inc., has cemented its position as a key player in crypto-collateralized credit, serving institutional clients like CleanSpark, Hut 8, and Flowdesk.
The milestone reflects a broader industry trend, with Coinbase's Bitcoin-backed lending platform recently crossing $1 billion in originations. Institutions increasingly favor this capital-efficient alternative to traditional credit, leveraging Bitcoin holdings without liquidation. "Shifting ownership patterns are driving demand," noted Two Prime's management, underscoring Bitcoin's maturation as institutional collateral.
Cardano Targets $0.94 as Coinbase ADA Holdings Surge 462%
Cardano (ADA) is regaining bullish momentum after weeks of consolidation, breaking above its 50-day moving average and eyeing the $0.94 resistance level. A breakout here could pave the way for a test of the psychologically significant $1.00 mark, potentially signaling a broader altcoin recovery in Q4.
Coinbase's ADA holdings have surged 462%, with reserves now at 9.56 million tokens. The growth of Coinbase Wrapped ADA (cbADA) — from 1.7 million to 9.53 million — underscores rising institutional demand for Ethereum-compatible Cardano exposure. Meanwhile, Coinbase's XRP holdings have plummeted 98%, suggesting a liquidity rotation toward ADA as institutional sentiment shifts.
CipherOwl Secures $15M Seed Funding for AI-Powered Crypto Compliance Solutions
CipherOwl, a San Francisco-based crypto compliance startup founded by ex-Coinbase engineers Leo Liang and Ming Jiang, has raised $15 million in seed funding. The round was led by General Catalyst and Flourish Ventures, with participation from Coinbase Ventures and Enlight Capital. The company specializes in AI-driven tools designed to help financial institutions monitor blockchain transactions for suspicious activity as traditional banks and fintechs increasingly adopt digital assets.
The startup's software leverages generative AI to flag risky transactions and generate plain-language reports, aiming to streamline compliance processes and reduce costs. Despite competition from established players like Chainalysis and Elliptic, CipherOwl has already onboarded major clients including Coinbase and OKX, along with undisclosed law enforcement agencies.
With just eight employees, CipherOwl positions itself as an "AI-native" solution, embedding machine learning at every LAYER of its detection process. The funding will accelerate its mission to navigate what founders call the "dark forest" of pseudonymous, cross-chain crypto transactions that challenge conventional anti-money-laundering systems.
