Bitcoin Lending: Moving On From the Banks

Who really controls your money?

When you deposit money in a bank, you receive a promise – an IOU that says you can withdraw those funds whenever you want. However, as the financial crises of our era have shown, promises can be broken, accounts can be frozen, and access can be denied.

Consider the track record: Wells Fargo's creation of millions of unauthorized accounts between 2011-2016, affecting over 3.5 million customers. Silicon Valley Bank's collapse in 2023, the second-largest bank failure in U.S. history. The 2008 financial crisis that saw institutions like Lehman Brothers collapse, and others require massive government bailouts. Even "too big to fail" banks have proven they're not too big to abuse customer trust.

These aren't isolated incidents. The Consumer Financial Protection Bureau reports that banks routinely:

• Charge excessive overdraft fees ($15.47 billion in 2019 alone)
• Freeze accounts without proper notification
• Resist customer attempts to switch banks
• Make it difficult to close accounts

Your money should truly be yours, and that's why we're building a different kind of financial system. What if you could access credit without giving up control of your assets? What if that asset was the most sound money ever created?

Enter Bitcoin lending, brought to you by Mezo.

Borrowing Without Sacrificing

Bitcoin holders shouldn't have to choose between holding their Bitcoin and using its value. Whether you need capital for a home renovation, business opportunity, or emergency expenses, selling your Bitcoin means triggering tax events and missing out on future gains. We knew there had to be a better way.

With Mezo, you can access traditional banking services while keeping your Bitcoin exposure. Our platform combines the reliability you expect from traditional banking with the transparency and flexibility of decentralized finance. Every transaction and reserve is publicly verifiable on-chain, giving you complete clarity into how your assets are being used.

You'll find the same financial services you're used to – lending, trading, and yield generation – but built on Bitcoin. Borrowing and lending Bitcoin can be complicated. Mezo’s goal is to make it as intuitive as using Venmo or PayPal, minus the black box. Lenders and borrowers alike will be able to see every transaction and interaction onchain.

On Mezo, everything is built on a foundation of security and transparency. Unlike traditional banks, which have paid over $243 billion in fines since 2008 for various violations of public trust, our system operates on smart contracts that automatically enforce loan terms. Bitcoin-based lending and borrowing will fundamentally change the relationship between you and your money.

In contrast: When Credit Suisse collapsed in 2023, account holders waited anxiously to learn the fate of their deposits. When FTX failed, customers lost billions in crypto assets they didn't truly control. But with Mezo's non-custodial approach, you always maintain control of your Bitcoin, protected by transparent smart contracts rather than banking promises.

Bitcoin Borrowing in Action

Let's break down what this means in practice. Say you need $50,000 for a home renovation. With traditional banking, you'd face weeks of paperwork, credit checks, and personal financial disclosures. If your wealth is in Bitcoin, a traditional option would be to sell it, triggering taxes and losing potential upside. But with Mezo, you can simply:

• Use 1 BTC ($107,000) as collateral at a 50% loan-to-value ratio
• Receive $53,500 in stablecoins or fiat almost immediately
• Keep full exposure to Bitcoin's upside potential
• Avoid triggering taxable events
• Pay competitive interest rates between 4-10% APR

For a more detailed look into how Bitcoin-backed borrowing works, read this blog post.

Unburden Yourself Today with Mezo

Mezo is building a platform that lets you borrow against your Bitcoin, anchored by a decentralized foundation, high-security standards, and battle-tested code. Mezo aims to bring institutional-grade rigor to the world of Bitcoin-backed lending.

No more selling Bitcoin to access its value. No more trusting banks with full custody of your funds. No more settling for minimal returns on your deposits.

Looking ahead, Mezo is building even more ways to make your Bitcoin work for you. Our roadmap includes:

• Instant bank integration for seamless transfers
• Exclusive discounts on gift cards, travel, and partner deals when you spend mUSD
• Frictionless payments for online and in-store purchases
• Expanded lending options and yield generation opportunities

Read the Cathedral and the Bazaar post for a closer look at how Mezo structures this system. If you want a detailed explanation of collateral requirements, liquidation thresholds, and how you can borrow mUSD, read the Bitcoin-Backed Loans post.

Once you’re ready to see for yourself how it all works, try out matsnet Alpha and discover how Bitcoin can become your banking provider.

If even the biggest names on Wall Street can exploit your trust, can you afford not to control your money yourself?

Links:

👾 Discord: https://discord.mezo.org

🕊 X: https://twitter.com/MezoNetwork

🏦 Deposit Portal: https://mezo.org/hodl-with/matsnet-alpha

ℹ️ Docs: https://info.mezo.org

📣 Telegram Announcements: https://t.me/mezonetwork