Crypto platform Backpack has expanded its services into Japan with the launch of its new Borrow and Lend feature, making Japan the first market to receive this service at launch. The company confirmed the rollout on December 22, 2025.
The feature allows users to lend supported crypto assets to earn variable returns or use those assets as collateral to borrow funds, such as USDC, enabling access to liquidity while maintaining exposure to their crypto positions. Backpack has positioned this as a "use without selling" option, targeting long-term holders seeking flexibility.
The service supports major assets including Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, and USDC. However, Backpack clarified that the feature does not include spot or perpetual trading at this stage, indicating a phased expansion strategy.
Backpack employs an automatic lending model. Once a supported asset is deposited, it is immediately lent out under a seven-day maturity loan, with interest accruing immediately. A key restriction is that assets under auto-lending cannot be withdrawn during the seven-day loan period. If a user adds more of the same asset, the loan term resets, extending the withdrawal lock from the latest deposit time.
The platform has also integrated this activity into its Backpack Points rewards program, which is now open to Japanese residents—a first for users in the country.
Backpack has warned users of the liquidation risks associated with borrowing against crypto, where collateral may be sold if asset prices fall sharply. The launch in Japan, a market with one of Asia's strictest crypto regulatory frameworks, signals confidence in Backpack's compliance setup and reflects growing demand for yield-based products among Japanese users.
