APX Earns Exemption from OSC for Crypto-Collateral Lending Platform

APX Lending this week announced that the Canadian Securities Administrators issued the Toronto fintech a first-of-its kind decision.

The Ontario Secures Commission decision grants APX relief from certain registration and prospectus requirements, which positions the fintech to be the first crypto-backed lender in Canada to provide borrowers with a solution to access liquidity using their digital assets as collateral, according to a statement from the firm.

APX’s exemption lasts until April 2028, allowing time to battle-test the firm’s lending platform.

“This marks a major step toward integrating crypto into mainstream finance and building a truly global, compliance-focused crypto-backed lending ecosystem,” stated chief executive officer Andrei Poliakov.

The global crypto-backed lending market is projected to exceed $45 billion by 2030, data from HTF Market Intelligence suggests. APX offers an institutional-grade lending platform wherein users can deposit Bitcoin or Ethereum as collateral and access liquidity through flexible loan terms ranging from three months to five years.

APX promises industry-leading security, strict adherence to Canadian regulatory directives, and insured cold storage custody via a “robust risk management framework” designed to facilitate transparency, safety, and security for both retail and institutional borrowers.

“Crypto-backed lending should be safe, secure, and simple to access,” Poliakov said. “By engaging with Canadian regulators and leading the way in Canada, we are setting a new benchmark for compliance and security in crypto-backed lending, helping retail and institutional borrowers unlock liquidity while maintaining ownership of their digital assets.”

APX launched at the 2023 Futurist Blockchain Conference in Ontario.

The fintech was founded by the team behind Coinberry, a Canadian licensed crypto exchange acquired by Vancouver-based WonderFi.

“We’ve witnessed the challenges and pitfalls that can plague the crypto lending industry,” Poliakov stated at the time. “With APX Lending, we’re determined to set a new standard, prioritizing the safety and security of our users above all else.”

In addition to a consumer-facing exchange, APX Lending offers a B2B Software-as-a-Service for banks looking to integrate technology and expand their lending offering. The company says it has been seeing “increased interest” in its white-label lending solution.