Bitpay Launches HODL Pay to Enable Crypto-Backed Stablecoin Spending

Atlanta-based firm Bitpay has introduced HODL Pay, enabling users to borrow stablecoins against cryptocurrency holdings for payments without liquidating assets. The service integrates decentralized finance (DeFi) protocols with Bitpay’s merchant network.

Crypto Users Can Now Borrow Stablecoins via Bitpay’s HODL Pay

In a message shared with Bitcoin.com News, Bitpay explained that in order to use HODL Pay, customers must collateralize crypto on Aave, a DeFi lending platform. Existing Aave users can immediately spend borrowed stablecoins; new users must first deposit eligible assets. Borrowed funds settle Bitpay invoices for retail purchases, travel, bill payments, or gift cards.

Users generate a Bitpay invoice at checkout, connect a crypto wallet via Walletconnect, and borrow stablecoins against their collateral. Loans are managed through Aave’s dashboard, with repayment terms controlled by the borrower.

Merchants accepting Bitpay payments automatically support HODL Pay without additional setup. The service is aimed at attracting long-term crypto holders by allowing spending without asset sales. Transactions settle next-day in fiat, crypto, or a mix.

HODL Pay is compatible with Ethereum, Arbitrum, Base, Polygon, and Optimism networks. Bitpay stated the expansion aligns with efforts to enhance layer two (L2) payment options for Web3 users.

“With HODL Pay, Bitpay gives users an innovative way to spend confidently today without giving up their future growth. We are proud to bring the benefits of DeFi into everyday payments,” Bill Zielke, the chief marketing officer at Bitpay remarked.

Nick Dossa of Vegas Auto Gallery said the service provides flexibility for crypto customers purchasing high-value items like luxury vehicles. HODL Pay is live globally for all Bitpay merchants.