How BridgingFi Works
How BridgingFi Works
BridgingFi operates as a full-stack pipeline that transforms Bitcoin’s idle capital into productive, real-world lending—without compromising security, ownership, or compliance. The process flows through three interconnected layers: Bridging Loan → RWA → BTC-Fi.
1. Origination: Secured Bridging Loans
We originate short-term, asset-backed loans in the UK property market.
Loans are secured against real estate with conservative loan-to-value ratios (LTVs).
Typical loan term: 6–18 months, with interest rates between 12%–18% per annum（or up to 10% yield to the investors）.
All loans are documented, legally enforceable, and backed by registered collateral.
This ensures predictable cash flows and low default risk.
2. Tokenization: Real-World Asset Layer
Each loan is placed into a Special Purpose Vehicle (SPV), a legally compliant structure that holds the loan and its collateral.
The SPV issues on-chain RWA tokens that represent fractional ownership in the loan pool.
Token holders receive interest payments in proportion to their share, verified on-chain.
Transparency is ensured through real-time reporting: repayment status, collateral valuation, and cash flow distribution are publicly accessible.
3. Capital Integration: BTC-Fi Layer
Bitcoin holders lock BTC in non-custodial smart vaults, retaining full on-chain ownership.
These BTC deposits serve as long-term capital anchors for the platform.
BridgingFi uses bank facilities and platform capital to deploy GBP liquidity into the RWA loan pool.
Loan interest flows back to the platform, where it is converted into yield for BTC depositors—paid in BTC or stablecoins.
This design unlocks Bitcoin’s productivity without handing over private keys or moving assets into custodial accounts.
4. Yield Flow
BTC holder locks BTC in non-custodial vault.
Platform secures GBP liquidity (bank line + own funds).
GBP is lent to UK borrowers via SPV-backed bridging loans.
Borrowers pay interest + principal to the SPV.
SPV distributes cash flow—converted into BTC yield—to depositors.
5. Risk Management
Collateralized lending: every loan is secured by physical property.
Conservative LTVs: reduces loss risk in case of borrower default.
SPV segregation: isolates loan assets from platform liabilities.
Non-custodial BTC design: eliminates centralized custody risk.
On-chain transparency: all positions and flows are auditable.
In Simple Terms
BridgingFi takes the security and capital of Bitcoin, pairs it with the stability and yield of UK property-backed loans, and delivers real, sustainable returns—all within a compliant, transparent structure.
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