Date: June 17th
Peoples Reserve redefines lending with Bitcoin as pristine collateral, helping savers build wealth smarter without selling their most valuable asset
A new kind of mortgage is poised to quietly enter the crypto-finance mainstream, and it doesn’t require a credit score, a bank account, or even the sale of assets.
Peoples Reserve, a fintech company positioning itself at the intersection of decentralized finance and hard money economics, is officially launching this summer what it calls Bitcoin Powered Mortgages (BPMs). The concept is simple: Bitcoin holders can now borrow against their Bitcoin without selling it, offering a new path to liquidity for long-term savers.
The product’s standout feature lies in its structure and terms. BPM loans are collateralized 1:1 with Bitcoin, require no income or credit verification, and, unlike traditional bitcoin backed lending systems, are not subject to price volatility liquidation. Unlike traditional mortgages which are backed by the borrower’s promise, BPMs are underpinned by BTC, which the company refers to as “pristine collateral.”
Founder CJ Konstantinos, also known as CJK, unveiled the long-anticipated interest rate levels on The Charlie Shrem Show. The base APR for a BPM depends on the borrower’s standing within the Peoples Reserve Network (PRN), a loyalty-based token program integrated into the platform.
According to the structure, Basic-level users start at 10.5% APR, with Silver, Gold, and Diamond levels offering reduced rates at 9.5%, 8.5%, and 7.5% respectively. Those in the Diamond level who over collateralize (200% max) can qualify for the program’s lowest attainable rate of 3.5% APR, which is lower than many traditional unsecured lending options in the market.
Interest rates are also dynamically tied to Bitcoin’s price performance:
- Every 10% gain in BTC price above the original starting interest rate reduces the APR by 0.20%.
- Every 10% drop in BTC price below the original starting interest rate increases the APR by 0.50%.
Their innovative floating model is designed to align with Bitcoin’s engineered design as savings technology, offering better terms to those who believe BTC will continue to be the best performing asset in the world.
Notably, collateral is not liquidated due to price volatility, a substantial risk in all other crypto lending products. Instead, Peoples Reserve contracts state that only failure to make payments would trigger liquidation. Additionally, the contracts emphasize that Bitcoin used as collateral is never rehypothecated and is held as a bankruptcy remote asset, adding a layer of custodial security not always present in the Bitcoin lending space.
The product arrives at a time when Bitcoin’s role in the broader financial system is evolving. Once viewed strictly as a speculative asset, BTC is increasingly being reimagined as a reserve instrument and collateral foundation. In a short explainer video, CJK frames Bitcoin’s digital scarcity and global liquidity as central to its status as “the most pristine form of collateral in the world”.
The loyalty element, via the PRN utility token, adds a further twist. Unlike Bitcoin, PRN is not positioned as a monetary asset but as a network loyalty token offering calculable economic incentives. Token holders gain access to a range of benefits, including lower borrowing rates, reduced swap and service fees, platform rewards, and more! Peoples Reserve has capped the PRN token supply at 1 billion, giving it what the company calls “absolute digital scarcity”. This echoes Bitcoin’s fixed supply tokenomics that form the cornerstone of Michael Saylor’s Digital Asset Framework for Digital Commodity & Token Assets.
While participation in the loyalty program isn’t mandatory, users without PRN holdings are treated as Basic-level borrowers. They will pay 10.5% APR which is still one of the lowest rates in the bitcoin lending industry. By max over collateralizing the loan, basic-level users can still get a low rate of 6.5% APR. That’s an interest rate below the current “anchor” rate for traditional mortgages, called the Prime Rate, which is only available to highly qualified borrowers. Whether you decide to participate in the loyalty program or not, competitive borrow rates are available with Peoples Reserve.
Peoples Reserve positions the BPM as a broader challenge to the traditional mortgage and lending space, aiming to give Bitcoin holders the ability to unlock the purchasing power of their savings without having to give up ownership. While the concept of borrowing against Bitcoin isn’t new, the company’s combination of 1:1 collateral to loan ratio requirement, loyalty-driven interest rates, and non-liquidation design, sets it apart from all other existing offerings.
Peoples Reserve is encouraging users to sign up for what it bills as the “#1 Newsletter in Bitcoin Powered Finance” to stay up to date on their upcoming launch and learn more about their Bitcoin Powered Finance products. Whether BPMs gain traction or remain a niche product remains to be seen. Peoples Reserve looks to be starting a new trend in crypto: bringing practical, real-world functionality to long-held digital wealth.
