Cryptocurrency lending has emerged as a powerful tool for investors seeking passive income in the digital asset space. By allowing users to lend their crypto holdings in exchange for interest, crypto lending platforms offer a decentralized alternative to traditional banking. This guide explores the top crypto lending platforms available in the UK, providing insights into how they work, which cryptocurrencies you can lend, and what to consider when choosing a platform.
Whether you're new to crypto or an experienced investor, understanding the landscape of crypto lending in 2025 is essential for maximizing returns while managing risk.
How Crypto Lending Works
Crypto lending enables individuals to earn interest by lending their digital assets—such as Bitcoin or Ethereum—to borrowers through centralized or decentralized platforms. In return, lenders receive regular interest payments, typically expressed as an Annual Percentage Yield (APY).
The process is straightforward:
- You deposit your cryptocurrency into a lending account.
- The platform uses your funds to facilitate loans to traders, institutions, or other users.
- You earn interest on your holdings, often compounded daily or weekly.
This model allows you to grow your portfolio without selling your assets, making it ideal for long-term holders who want to benefit from both appreciation and yield.
👉 Discover how to start earning high APY on your crypto holdings today.
Top Crypto Lending Platforms in the UK
1. DeFi Swap – Up to 75% APY
DeFi Swap stands out for offering one of the highest interest rates in the market—up to 75% APY—for users willing to lock their tokens for extended periods. The platform supports lending through yield farming and liquidity provision, powered entirely by smart contracts.
Key features:
- Flexible lock-in periods: Choose from 90-day (45% APY), 180-day (60% APY), or 365-day (75% APY) terms.
- Dual rewards system: Earn passive income via static rewards and liquidity pool incentives.
- Wallet integration: Compatible with MetaMask and WalletConnect for seamless access.
While DeFi Swap charges a 10% fee on buys and sells (split between token holders and liquidity funds), its decentralized nature ensures full control over your assets.
2. AQRU – Up to 12% APY
AQRU is a user-friendly platform ideal for beginners and active investors alike. It offers competitive rates—up to 12% APY—on major cryptocurrencies including Bitcoin, Ethereum, Tether (USDT), USD Coin (USDC), and DAI.
What sets AQRU apart:
- No lock-in periods: Withdraw or reallocate funds anytime.
- Fiat on-ramp support: Deposit directly using credit/debit cards or bank transfers via MoonPay—no fees.
- Daily compounding: Interest paid out every 24 hours, accelerating growth.
- Mobile app access: Manage your portfolio on the go.
With no deposit or withdrawal fees and integrated insurance protection, AQRU combines convenience with security.
👉 See how you can earn up to 12% APY with flexible crypto lending options.
3. Crypto.com – Up to 14% APY
Crypto.com remains one of the most trusted names in the industry, supporting over 50 cryptocurrencies with interest rates reaching 14% APY on stablecoins like USDC.
Highlights:
- Flexible and fixed-term options: Choose between flexible lending or 1–3 month lock-ins for higher yields.
- CRO staking benefits: Maximize returns by staking at least $4,000 worth of CRO (Crypto.com’s native token).
- Weekly interest payouts: Track earnings via web or mobile app.
- Ecosystem integration: Access exchange services, crypto-backed credit cards, and more.
Although early withdrawals may incur penalties, the platform’s regulatory compliance and global reputation enhance trust.
4. Nexo – Up to 36% APY
Nexo caters to aggressive yield seekers, offering up to 36% APY on select altcoins like Axie Infinity (AXS) and Terra (LUNA). With support for 32 cryptos, Nexo delivers high returns with daily compounding.
Important considerations:
- Interest paid in NEXO tokens: All rewards are distributed in the platform’s native token, which may require swapping if you prefer other currencies.
- No account fees: Free deposits and withdrawals.
- $170M+ in interest paid: Proven track record of reliable payouts.
- Multi-layered security: Includes institutional-grade custody and insurance.
Nexo’s strength lies in its ability to deliver exceptional yields while maintaining robust fund protection.
5. YouHodler – Up to 12.3% APY
YouHodler supports lending across 50 different coins, with top rates of 12.3% APY on USDT and 12% on USDC. It’s particularly popular for its dual-use functionality.
Unique advantages:
- Double utility: Use lent crypto as collateral for instant loans without withdrawing funds.
- Flexible terms: Adjust or withdraw at any time.
- Weekly interest payouts: Enables consistent compounding.
- $150 million insurance policy: Provides strong protection against hacks.
YouHodler’s intuitive interface and advanced financial tools make it a strong contender for diversified portfolios.
Types of Crypto Lending
Understanding the different models of crypto lending helps you choose the right strategy based on risk tolerance and goals.
Custodial Lending (Platform-Based)
Platforms like AQRU and Crypto.com act as intermediaries, managing your funds in custodial wallets and distributing loans. While convenient, this model requires trust in the platform’s security and solvency.
Staking (Proof-of-Stake Lending)
Often referred to as "staking," this method involves locking up coins to help validate blockchain transactions. Rewards come from newly minted coins and transaction fees. However, assets are typically locked for days or weeks.
Peer-to-Peer (P2P) Lending
In P2P lending, you lend directly to individual borrowers via decentralized platforms. While potentially lucrative due to higher interest rates, it carries greater default risk and limited recourse in case of non-payment.
Which Cryptocurrencies Can You Lend?
Not all cryptocurrencies support lending. The most commonly supported ones include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- USD Coin (USDC)
- DAI
- PAX Dollar (PAX)
- Avalanche (AVAX)
- Chainlink (LINK)
- Cosmos (ATOM)
- Uniswap (UNI)
Stablecoins often offer higher yields due to consistent demand from traders and institutions needing liquidity without exposure to price volatility.
Is Crypto Lending Safe?
While crypto lending can be profitable, it comes with risks:
- No FSCS protection: Unlike UK bank accounts, crypto deposits aren’t covered by the Financial Services Compensation Scheme.
- Platform risk: Even reputable platforms can face insolvency or security breaches.
- Market volatility: The value of your principal can drop significantly despite earning interest.
- Default risk: Especially in P2P lending, borrowers may fail to repay.
To mitigate these risks:
- Choose platforms with strong security measures and insurance coverage.
- Diversify across multiple platforms and assets.
- Avoid overexposure to high-yield, high-risk offerings.
👉 Learn how top platforms secure your investments while delivering strong returns.
Frequently Asked Questions (FAQs)
What is crypto lending?
Crypto lending allows you to earn interest by temporarily giving your digital assets to borrowers via a platform. In return, you receive regular payments based on an agreed APY.
How does crypto lending work?
You deposit crypto into a lending account. The platform lends it out—often to margin traders or institutions—and shares a portion of the interest with you. Earnings are usually compounded daily or weekly.
Is crypto lending safe?
It carries more risk than traditional savings but can be relatively safe when using reputable, insured platforms. Always research a platform’s security practices and understand that your capital is at risk.
Which is the best platform for lending crypto?
For flexibility and ease of use, AQRU is highly recommended. For maximum yield, DeFi Swap offers up to 75% APY with longer lock-ins. Your choice depends on your risk appetite and investment goals.
Is lending Bitcoin profitable?
Yes, especially when using stable platforms with competitive rates. Even at lower APYs (e.g., 4–8%), consistent compounding can generate meaningful returns over time without selling your BTC.
Can I withdraw my crypto anytime?
On flexible accounts like AQRU or YouHodler, yes. However, fixed-term products may penalize early withdrawals or withhold interest until maturity.
Final Thoughts
Crypto lending offers UK investors a compelling way to generate passive income from their digital assets. With platforms offering up to 75% APY and supporting dozens of coins, there's never been a better time to explore this space—provided you do so wisely.
Prioritize platforms with transparent operations, strong security protocols, and flexible terms. Whether you're looking for daily compounding, fiat integration, or ultra-high yields, the right crypto lending solution exists for your needs in 2025.