Lantern Finance, a U.S.-based crypto-backed lending startup building infrastructure for collateralized digital asset loans, has raised over $1 million in seed-stage funding as it scales its platform that allows users to borrow cash against cryptocurrency holdings without selling their assets.

The round includes participation from Orange DAO, Supermoon Ventures, and Andover Ventures, alongside additional early angel investors and strategic backers in the digital asset and fintech ecosystem. The company has also been supported by Plug and Play Tech Center through its venture ecosystem network, reflecting growing institutional interest in crypto-native lending infrastructure.

Lantern Finance operates a crypto-backed lending platform that enables users to post digital assets such as Bitcoin, Ethereum, Solana, and other major cryptocurrencies as collateral in exchange for U.S. dollar loans. The company’s model allows borrowers to access liquidity without selling their crypto holdings, thereby avoiding taxable events and maintaining exposure to potential price appreciation.

Unlike traditional unsecured lending or credit-based systems, Lantern’s loans are overcollateralized and structured around real-time collateral monitoring. Users can borrow up to a percentage of their crypto’s value, with interest rates determined by asset type, loan duration, and risk parameters. The platform also supports both borrowers and lenders, with lenders earning yield from loan issuance backed by crypto collateral held in custody.

A key differentiator for Lantern Finance is its emphasis on institutional-grade custody and security infrastructure. The company partners with BitGo, a regulated digital asset custodian, to store collateral in insured cold storage. According to company disclosures, assets are protected with up to $250 million in insurance coverage and are never rehypothecated, meaning client collateral is not reused for additional lending activities.

Lantern Finance was founded by Jung Won Kim and Prince Jindal, who previously worked across fintech and traditional financial systems before entering the digital asset lending space. The founders positioned the company in response to instability seen in earlier crypto lending platforms, with a focus on transparency, regulated custody, and risk management practices designed to avoid the failures of prior market cycles.

The startup gained early traction through participation in the Techstars Web3 accelerator program in 2024, which helped it refine its lending infrastructure and expand early user adoption. Since then, Lantern has expanded its supported collateral base to include multiple cryptocurrencies and has grown loan volume significantly through retail and crypto-native borrowers seeking liquidity without liquidation of holdings.

The company’s platform also includes a yield product for lenders, offering annual percentage yields based on lending duration and participation level. This dual-sided structure allows Lantern to act as both a borrowing and lending marketplace, connecting capital providers with crypto-backed loan demand in a structured, risk-managed environment.

Funds from the seed round are expected to be used to expand product capabilities, scale lending infrastructure, improve risk management systems, and enhance regulatory compliance frameworks as the company grows its user base. Lantern Finance is also focused on expanding its integrations with custody, compliance, and blockchain infrastructure providers to support broader institutional adoption.

Lantern Finance is part of a growing category of fintech companies building crypto-native financial infrastructure that bridges digital assets with traditional lending systems. As demand increases for liquidity solutions that do not require asset liquidation, platforms like Lantern are positioning themselves as alternatives to both centralized exchanges and traditional credit markets.

With backing from Orange DAO, Supermoon Ventures, Andover Ventures, and ecosystem support from Plug and Play Tech Center, Lantern Finance is now focused on scaling its lending platform, expanding supported assets, and strengthening its position in the emerging crypto-backed credit market.

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