The popular crypto wallet and exchange platform Backpack has officially launched its highly anticipated Borrow/Lend feature in Japan as of December 22, 2025. Announced on the social media platform X, this groundbreaking update introduces new ways for crypto enthusiasts to utilize their digital assets beyond the traditional “buy and hold” method. The feature enables users to earn returns without selling their BTC, ETH, SOL, XRP, or USDC.
What Is Backpack’s Borrow/Lend Feature?
Backpack’s Borrow/Lend service operates on a decentralized finance (DeFi)-inspired system providing two core functionalities:
Lending
Users can deposit supported crypto assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), or USD Coin (USDC) into the platform. These assets generate a variable yield, with returns fluctuating based on market demand—a simple and efficient way to earn passive income from your dormant crypto holdings.
Borrowing
This feature allows users to lock up their crypto assets as collateral to borrow stablecoins like USDC. This “use without selling” option ensures liquidity for trading, spending, or safeguarding investments while retaining ownership of the underlying crypto and avoiding the risk of missing future gains.
Safety First: Risk Warnings and Recommendations
To protect users, Backpack has emphasized conducting proper risk assessments. Borrowing involves liquidation risks if the collateral value declines significantly, leading to potential automatic asset liquidation. Monitoring factors like loan-to-value (LTV) ratios and volatile market conditions is critical.
The platform has adopted a straightforward approach in its initial rollout, offering only Borrow/Lend services. Spot trading and perpetual contracts remain unavailable for the time being, making the feature accessible even to beginners.
Earn Rewards with Backpack Points
A major highlight is the introduction of Backpack Points, a rewards system that incentivizes both borrowers and lenders. Users earn points that can be redeemed for perks such as airdrops, reduced fees, or exclusive platform benefits. This rewards program is poised to drive user adoption and platform growth.
Why This Launch Matters
The expansion into Japan represents a significant milestone for Backpack. Previously constrained by regulatory challenges, the platform now has access to one of Asia’s largest and most dynamic crypto markets. Japanese users can now enjoy the benefits of lending and borrowing crypto, particularly during a period of economic shifts.
With the Bank of Japan raising interest rates to 0.75% under Governor Kazuo Ueda’s leadership, borrowing Japanese yen has become more expensive. This makes crypto lending platforms like Backpack an attractive alternative for users seeking better annual yields compared to traditional savings accounts.
The Global Crypto Landscape
Backpack’s new feature arrives at a crucial moment for the crypto market. Bitcoin has struggled to surpass the $88,000 mark, and Ethereum is experiencing mixed demand despite ETF activity. Against this backdrop, holders are looking for ways to optimize returns instead of keeping their crypto assets idle.
DeFi platforms continue to gain momentum, with over $150 billion locked worldwide. By offering innovative tools like Borrow/Lend, Backpack is positioned to attract funds from a global user base while addressing the rising demand for alternative financial solutions.
Recommended Product for Crypto Enthusiasts
If you’re serious about managing your digital assets, consider the Ledger Nano X, a leading hardware wallet trusted by millions worldwide. With top-notch security and seamless compatibility, it’s perfect for safeguarding your crypto investments.
Stay ahead of the curve with Backpack’s newest updates and maximize your crypto’s potential today!
