3 differences between traditional banking and crypto lending

Hey Lantern Community,

Your favorite US-based crypto loan platform is now just one text away.

Lantern Finance now offers support via text: (415) 365-0100

Learn more here: https://x.com/LanternFi/ status/1944860017750106593

Back to this week’s newsletter:

You might have wondered what the key differences are between taking a loan from a bank vs. crypto-backed loans. We have 3 to share today!

But first, market update!

3 Differences Between Traditional Banking And Crypto Lending

1. Speed

Remember waiting 30-60 days for mortgage approval? Traditional banks require extensive paperwork, credit checks, income verification, and multiple approval layers.

With platforms like Lantern, you can access liquidity on the same day. No credit checks, no income verification, no waiting for multiple departments to review your application.

Your crypto serves as collateral, and that's all we need to know.

2. Skip Traditional Asset-Based lending barriers

When you try to borrow against traditional assets, you face numerous hurdles that crypto lending eliminates entirely.

Borrowing against your house (HELOCs/Home Equity)

Requirements:

• Credit score of 700+ (lower scores = denial or higher rates)

• 15-20% equity minimum already built up

• Extensive income and employment verification

• Strict debt-to-income ratio requirements

• Property appraisals and title searches

• Months-long approval processes

Borrowing against stocks (securities-based loans)

Requirements:

• $100,000+ minimum in eligible investments

• Only certain stocks/funds qualify (volatile securities excluded)

• Constant collateral monitoring due to price fluctuations

• Purpose restrictions (can't buy more securities)

• Limited to non-retirement accounts only

• Complex lender-specific rules and advance rates

Many qualified individuals get denied traditional asset-based loans due to recent job changes, credit score fluctuations, or simply not meeting arbitrary minimums.

With crypto lending, you skip all of this complexity.

3. Flexible Terms

Preset loan terms, hidden fees, prepayment penalties, and complex rate structures that change without notice. You're locked into their system filled with landmines.

Platforms like Lantern offer flexible repayment schedules and complete fee transparency. You can choose terms that suit your needs rather than being bound by bank preset rules, and there are no prepayment penalties.

Key Advantages:

• Fixed interest rates (no surprise rate hikes)

• No prepayment penalties

• Transparent fee structure

• Flexible repayment options

• Clear loan terms are published upfront

Why are crypto-backed loans better than traditional asset-based lending?

Traditional asset-based lending creates unnecessary friction between you and your liquidity needs. Whether you're trying to capitalize on a time-sensitive opportunity or simply need cash flow, crypto lending removes the barriers that traditional banking puts in your way.

The key is working with a platform that understands both traditional finance and crypto markets. At Lantern, we've structured our lending to provide the security and reliability you'd expect from traditional banking, with the innovation and efficiency that crypto enables.

Questions about how crypto lending could fit into your portfolio strategy?

Our team will walk through your specific situation. Just reply to this email.

Until next time,

The Lantern Team