Bitcoin loans: Cadena vs. the alternatives
Ledn, Unchained, and SALT are the most commonly cited custodial options. Here is an honest, sourced breakdown of how each one works and where the structural risks sit.
Non-custodialCadena | Ledn | Unchained | SALT | |
|---|---|---|---|---|
| Custody & Control | ||||
| Keep BTC in self-custody | Your keys never leave your device. We hold nothing. | ~ | ||
| No rehypothecation | Each contract is a unique on-chain pool. Your BTC is never lent to a third party. | ~ | ||
| Bitcoin-native (no wrapping) | Pure Bitcoin base-layer. No bridges, no sidechains, no EVM. | ~ | ||
| Fully on-chain enforcement | Settlement is enforced by Bitcoin script. No server on our end is required. | ~ | ||
| Pre-signed settlement | All outcomes are cryptographically signed before funding. The contract cannot be altered mid-term. | |||
| Loan Mechanics | ||||
| No margin calls / liquidation | No liquidation bots. No margin calls. Settlement is a single event at maturity. | |||
| No credit check | Bitcoin is the collateral. Your credit history is irrelevant. | |||
| No taxable event | Borrowing against BTC is not a sale. No capital gains triggered. | ~ | ||
| Keep BTC price upside | Your BTC stays in the contract. If price rises, you keep the gain. | ~ | ||
| Fixed yield for lender | Lenders earn a fixed, pre-agreed APR enforced by the contract itself, not by our promise. | |||
| Access & Transparency | ||||
| Minimum loan size | $1,000 | $1,000 in BTC | $150,000 | $5,000 |
| Available in the US | All 50 states | |||
| Proof of reserves / verifiability | Every contract is a verifiable on-chain transaction. Verify it yourself on any block explorer. | |||
✓ = yes · ✗ = no · ~ = partial / conditional. Rates and terms sourced from platform websites and published terms. Last updated June 2026.
Custody is the root variable
Every material difference in the table above traces back to one question: who holds the keys during the loan? Ledn, Unchained, and SALT all take custody of your Bitcoin in some form. That single fact determines rehypothecation risk, counterparty risk, and what happens if the platform fails.
We use Discreet Log Contracts. Your Bitcoin is committed to a Bitcoin-native script that neither we nor the lender can access unilaterally. Settlement is pre-signed and mathematically enforced. There are no keys to seize, no pool to commingle, and no discretion to exercise.
Why Cadena wins the comparison
What you get with Cadena that no custodial platform can match.
Cadena vs. Ledn
Ledn is US-unavailable and rehypothecates your collateral
Cadena is available to US residents. Ledn is not. Ledn is blocked for US borrowers entirely. We are open globally, including all 50 US states, with the exception of China.
With Cadena, your Bitcoin cannot be lent to anyone. Ledn's standard loan tier explicitly reserves the right to re-lend your collateral. With Cadena, your Bitcoin sits in a unique on-chain contract. No one can touch it except the pre-signed settlement logic.
Cadena has no margin calls. Ledn does. If Bitcoin drops during a Ledn loan, they can demand more collateral or liquidate your position. Our contracts have no in-term liquidation mechanism. Settlement happens once, at maturity.
Cadena vs. Unchained
Unchained requires $150k minimum to borrow
Cadena starts at $1,000. Unchained requires $150,000. Unchained's three-key custody model is operationally expensive and priced accordingly. Our non-custodial DLC architecture has no per-loan custody overhead, so it is accessible to any borrower.
Cadena has no margin calls. Unchained does. Even with distributed key custody, Unchained retains the ability to foreclose if LTV falls below their threshold. Our contracts are locked for the full term with no early-settlement mechanism.
Cadena is fully on-chain. Unchained mixes on-chain collateral with off-chain loan operations. Unchained holds collateral in a verifiable multisig, but loan terms and enforcement are managed off-chain. Our settlement logic is entirely in Bitcoin script.
Cadena vs. SALT
SALT explicitly authorizes rehypothecation and publishes no proof of reserves
Cadena cannot rehypothecate your Bitcoin. SALT explicitly can. SALT's published loan terms authorize them to repledge, sell, or otherwise transfer your collateral. Our DLC structure makes rehypothecation structurally impossible. Your Bitcoin is locked in a contract neither party can unilaterally access.
Cadena's proof of reserves is on-chain by design. SALT publishes none. Every contract is a verifiable Bitcoin transaction. You can check it on any block explorer. SALT has no public proof-of-reserves and no independent verification path for whether their collateral pool is intact.
Cadena has no margin calls by default. SALT charges extra to remove them. SALT charges a one-time fee for SALT Shield, which removes margin calls. With Cadena, there are no margin calls at all. Not because you paid extra, but because the contract structure does not allow them.
No custody. No counterparty. Just Bitcoin script.
We are the only platform on this list where your Bitcoin never enters a third-party wallet. Every settlement outcome is pre-signed and enforced on-chain before the loan begins.