Tim Draper backs Satz Terminal’s non-custodial Bitcoin-backed loan market, designed to preserve long-term upside potential while avoiding custodial risks and exits, allowing Bitcoin holders to tap into liquidity without having to sell.
Never sell BTC again? Tim Draper backs non-custodial borrowing market as liquidity concerns hit holders
Prominent investor and venture capitalist Tim Draper posted a strong endorsement of Satz Terminal on social media platform
Draper explained:
Bitcoin holders face a cruel choice when they need cash. Sell your BTC (cry later). Or spend six hours comparing complex CeFi platforms with confusing fees and storage risks. Neither option makes sense.
The venture capitalist then pointed to his firm’s involvement, saying, “Our portfolio company, Satz Terminal, just launched Borrow, the first non-custodial marketplace for Bitcoin-backed loans.”
He further elaborated on why this product is important for long-term Bitcoin holders by outlining how Borrow is structured to remove the usual trade-off between liquidity and ownership. Draper describes the platform as a single marketplace that brings together Bitcoin-backed lenders from both decentralized and centralized locations, allowing borrowers to compare options in one place while maintaining control of their assets. He emphasized that the model is non-custodial, requires no identity verification, and provides full pricing transparency as loan-to-value ratios, fees, terms and effective interest rates are displayed in real-time before commitment. Draper also pointed to a simplified borrowing flow that allows users to move directly from Bitcoin collateral to stablecoin liquidity, positioning Borrow as a viable alternative to Bitcoin sales for those who prioritize self-custody and long-term exposure.
read more: Tim Draper is bullish on Bitcoin becoming a currency for robots and AI
In its own message on X, Satz Terminal emphasized that selling Bitcoin in moments of short-term financial pressure will have long-term costs. “Remember when you sold your Bitcoin for $20,000 to buy a car? Or when you sold it for $40,000 in 2023 to put money down on your mortgage? Or when you paid for your $70,000 wedding in BTC? You probably don’t even have that car anymore. BTC has risen 450% since then,” the company wrote, adding:
See a pattern? Bitcoin is the ultimate asset, so you should never sell your BTC. You need liquidity – borrow against it.
The post reinforces the company’s core argument that Bitcoin-backed borrowing can maintain long-term exposure while addressing immediate cash needs, and positions the product as an alternative to irrevocable sales during periods of temporary liquidity needs.
FAQ ⏰
- What is Sats Terminal Borough?
Sats Terminal Borrow is a non-custodial marketplace that aggregates Bitcoin-backed loan offers without the need for KYC. - Why does Tim Draper support Sats Terminal?
Tim Draper said the platform allows Bitcoin holders to access liquidity without having to sell or give up their BTC. - How is borrowing against Bitcoin different from selling?
Borrowing allows holders to maintain Bitcoin exposure while meeting short-term cash needs. - What risks does Sats Terminal aim to mitigate?
The platform focuses on reducing storage risks, opaque rates, and opportunity costs of selling Bitcoin.
