Lygos Finance unveiled what it calls the first truly non-custodial bitcoin (BTC)-backed lending platform, aiming to transform the crypto credit market with institutional-grade design.

The platform is built on Discrete Log Contracts (DLCs) developed by Atomic Finance, which Lygos acquired earlier this year.

DLCs enforce bilateral lending agreements directly on Bitcoin’s base layer, with an external oracle attesting to facts like BTC-USD prices, but not controlling the funds. Borrowers and lenders sign Contract Execution Transactions, meaning settlement happens entirely on the Bitcoin blockchain without custodians or smart-contract risk.

“True non-custodial means exactly this,” CEO Jay Patel said in an emailed announcement on Thursday. “No participant other than the borrower and lender ca

See Full Page