Lantern Finance, a U.S.-based crypto-backed lending platform building collateralized digital asset loans for retail and institutional borrowers, has raised early-stage funding to expand its infrastructure for borrowing and lending against cryptocurrency holdings.

The company has raised over $1 million in seed funding, with participation from Orange DAO, Supermoon Ventures, and Andover Ventures, alongside a broader group of angel investors active in crypto, fintech, and digital asset infrastructure. The round reflects continued investor interest in regulated, custody-backed crypto lending models following volatility in earlier centralized lending platforms.

Lantern Finance enables users to borrow fiat liquidity—typically U.S. dollars—by posting cryptocurrencies such as Bitcoin, Ethereum, and other major digital assets as collateral. The platform is designed to allow borrowers to access cash without selling their crypto holdings, helping them avoid taxable events while maintaining exposure to potential upside in asset value.

The company structures its loans as overcollateralized positions, meaning borrowers must deposit digital assets exceeding the value of the loan. These positions are continuously monitored for risk, with liquidation mechanisms in place to manage volatility in underlying crypto prices. Loan terms, interest rates, and collateral requirements are dynamically adjusted based on asset type and market conditions.

A key component of Lantern Finance’s infrastructure is its custody and security framework. The company partners with BitGo for regulated digital asset custody, with collateral stored in insured cold storage systems. This structure is intended to reduce counterparty risk and improve transparency compared to earlier generations of crypto lending platforms.

Lantern Finance was founded by Jung Won Kim and Prince Jindal, who bring experience in fintech, crypto infrastructure, and financial systems development. The founders built the platform in response to perceived gaps in the crypto lending market, particularly around transparency, risk management, and secure custody practices following several high-profile failures in the sector.

The company participated in the Techstars Web3 accelerator program in 2024, which helped refine its lending architecture and expand early product adoption. Since then, Lantern has broadened its offering to support a wider range of digital assets and has expanded both borrower and lender participation within its ecosystem.

In addition to borrowing services, Lantern Finance also offers yield-generating products for lenders who provide capital for crypto-backed loans. These lenders earn returns based on interest payments from borrowers, with risk managed through overcollateralization and custodial safeguards. The platform is designed to operate as a two-sided marketplace connecting liquidity providers with crypto holders seeking loans.

Funds from the latest round will be used to scale lending infrastructure, expand supported assets, improve risk management systems, and enhance regulatory and compliance frameworks. The company is also investing in platform security, custody integrations, and operational scaling to support growing transaction volumes.

Lantern Finance operates within a broader trend of crypto-native financial infrastructure startups aiming to bridge traditional credit markets with digital assets. As demand increases for liquidity solutions that do not require asset liquidation, crypto-backed lending platforms are positioning themselves as an alternative to both centralized exchanges and traditional banking credit systems.

With backing from Orange DAO, Supermoon Ventures, and Andover Ventures, Lantern Finance is now focused on scaling its lending platform, expanding its product suite, and strengthening its position in the evolving crypto credit ecosystem.

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