Lygos Finance has acquired Atomic Finance to launch a non-custodial Bitcoin-backed lending platform using Discrete Log Contracts (DLCs). This move aims to provide a secure and transparent alternative to traditional crypto lending services.
The acquisition was finalized during the 2025 OPNEXT conference, a Bitcoin-focused event held in Tysons Corner, Virginia. Lygos Finance, known for its Bitcoin-native financial services, and Atomic Finance, a pioneer in DLC technology, recognized a shared vision of creating a trust-minimized lending ecosystem. DLCs, which are cryptographic smart contracts, enable conditional agreements without requiring a trusted intermediary.
Jay Patel, CEO of Lygos Finance, emphasized the importance of this acquisition, stating, “By integrating Atomic Finance’s DLC technology, we can offer a lending platform that aligns with Bitcoin’s principles of decentralization and self-sovereignty.”
The new platform will allow borrowers to pledge Bitcoin as collateral in a 2-of-2 multisignature arrangement, with one key held by the borrower and the other by the lender. DLCs will automate loan functions, such as collateral release upon repayment and liquidation in case of default. Magnolia Financial will provide oracle services to supply external data necessary for contract execution.
Lygos Finance plans to offer loans ranging from $100,000 to $100 million, with loan-to-value ratios between 60% and 75%. Interest rates will be competitive, potentially lower than 15%, depending on loan size. The platform is currently in private beta, with a public launch anticipated later this year.
This development marks a significant step toward establishing a more secure and decentralized Bitcoin-backed lending market, potentially attracting institutional investors and high-net-worth individuals seeking to leverage their Bitcoin holdings without relinquishing custody.
