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Templar Launches Native Bitcoin Lending Without Intermediaries

Bitcoin Magazine

Templar Launches Native Bitcoin Lending Without Intermediaries

In a significant development for Bitcoin holders, Templar Protocol has announced the launch of its mainnet, introducing the first “Cypher Lending” protocol that enables users to borrow U.S. dollar stablecoins against their native Bitcoin without intermediaries. The launch comes at a time when institutional custody solutions are controlling an increasing share of the Bitcoin supply, with Coinbase alone holding over 10% of the circulating BTC.

The protocol, which has already secured $100 million in lending commitments, combines decentralized Multi-Party Computation (MPC) network technology with immutable smart contracts to ensure user collateral remains secure and free from unauthorized intervention. This launch marks a departure from traditional centralized lending platforms and wrapped token solutions that have dominated Bitcoin lending.

“The Institutions have arrived and they’re hoovering up BTC using centralized custody of companies like Coinbase,” notes Royal F00l, Templar Protocol’s pseudonymous founder. “With Templar, you send your BTC to an immutable smart contract, running on a p2p network, which then sends you stablecoins.”

The protocol introduces several key innovations, including permissionless access without KYC requirements, open-source architecture with no administrative backdoors, and privacy-first design. At launch, Templar supports native assets across Bitcoin and other chains.

The technical architecture employs a decentralized MPC network for securing Bitcoin deposits, while smart contracts manage collateralization and repayment processes automatically. This removes the need for traditional custodians while maintaining security and efficiency.

“Bitcoin was created to replace banks, not to be a novel toy asset for Wall Street to financialize and control,” adds Royal F00l. “Templar restores Bitcoin to its proper place as a permissionless, censorship resistant asset in the context of borrowing and lending.”

While Ethereum’s DeFi ecosystem has flourished, Bitcoin lending has remained largely centralized. Templar’s solution aims to change this dynamic by providing a decentralized lending option for Bitcoin holders.

The protocol’s roadmap includes implementing additional privacy features, such as differential privacy and zero-knowledge protections against predatory liquidations. Templar is also being integrated with various Prime Brokers and wallet providers to expand its accessibility.

This development comes at a crucial time in the Bitcoin market, as demand for decentralized financial services continues to grow. Templar’s approach of enabling native asset lending without wrapping or bridging could set a new standard for cross-chain DeFi interactions.

"(《世界人权宣言》) Templar mainnet is now live and accessible through their website, with documentation and support available through their official channels. The team emphasizes their commitment to expanding the protocol’s capabilities while maintaining its core principles of permissionless access and user sovereignty.

This post Templar Launches Native Bitcoin Lending Without Intermediaries first appeared on Bitcoin Magazine and is written by Vivek Sen.


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