Firefish, an open marketplace for Bitcoin-collateralized loans, has successfully closed a $1.8 million seed funding round. This round was led by notable entities in the Bitcoin and European venture capital sectors, including Braiins, the world’s oldest Bitcoin mining pool and creator of Braiins OS, and Miton, a Prague-based venture capital firm focusing on innovative European startups.
Strategic Utilization of Funds:
Martin Matejka, CEO and Co-Founder of Firefish, stated,
The funding will be used to further scale Firefish’s institutional lending program to reach even more investors and High Net Worth Individuals who seek traditional investments in the Bitcoin space. With the addition of stablecoins, we will also be able to reach investors and borrowers all over the world.”
Addressing a Critical Gap in Bitcoin’s Financial Infrastructure:
Established in 2022, Firefish was founded with the vision of creating a trust-minimized and open lending marketplace. The platform enables users to borrow fiat currency against their Bitcoin holdings without the need to sell or rely on centralized entities. Built natively on Bitcoin, Firefish employs multi-signature escrow contracts, price and payment oracles, and pre-signed recovery transactions. This innovative approach transforms Bitcoin into “super collateral” for real-world financial needs, aligning with the company’s mission to enhance Bitcoin’s financial infrastructure while upholding principles of self-custody, transparency, and trust minimization.
Founders’ Expertise and Vision:
Based in Prague, Firefish was co-founded by Martin Matejka and Igor Neumann. Their collective frustration with traditional lending models and the opacity of centralized crypto lenders motivated them to develop a more transparent and user-centric solution. Firefish’s infrastructure is designed to eliminate the need for users to entrust their assets to opaque intermediaries, instead leveraging code-enforced transparency to ensure security and trust.
Innovative Approach to Bitcoin-Backed Lending:
Firefish’s platform allows users to obtain loans by pledging their Bitcoin as collateral without selling it or transferring it to a centralized entity. Unlike centralized solutions, Firefish does not hold user funds. Instead, it utilizes a secure 3-of-3 multisignature escrow system and operates as an open marketplace, directly connecting borrowers and investors. The platform incorporates safeguards such as overcollateralization, automated liquidation at 95% loan-to-value (LTV), and a last-resort recovery mechanism for critical scenarios. Traditional investors can earn interest without handling Bitcoin or delving into the complexities of cryptocurrency, while institutions can access substantial loans via Firefish Prime. With features like instant loans, customizable terms, flexible liquidation options, and full legal compliance, Firefish is redefining the landscape of Bitcoin-backed lending.
Expanding Access to Stablecoin Liquidity:
Initially supporting loans in EUR, Firefish has expanded its offerings to include CHF and USDC-denominated loans. This expansion broadens the platform’s appeal across various geographies, enabling users in the U.S., Switzerland, and other regions to secure instant USDC loans in as little as 15 minutes. By integrating stablecoins, Firefish facilitates access to liquidity for Bitcoin holders who wish to retain their BTC exposure while obtaining fiat-equivalent capital. This development is particularly significant as stablecoins gain prominence for cross-border settlements and lending due to their speed and reliability.
Impressive Growth and Market Demand:
Since its launch, Firefish has achieved over $100 million in transaction volume, served more than 10,000 users, and secured nearly 1,000 BTC in escrowed collateral. In March 2025 alone, the platform experienced triple-digit month-over-month growth, driven by increasing interest from both borrowers and lenders. This surge reflects broader trends in the Bitcoin credit market, where users are increasingly seeking decentralized, collateral-backed solutions to maintain their long-term BTC exposure while accessing working capital. Lenders are attracted to Firefish’s market-driven rates and compelling risk-reward dynamics, especially when compared to returns in traditional low-yield environments.
Competitive Edge and Future Outlook:
Addressing the competitive landscape, Matejka highlighted that most existing companies operate centralized platforms managing large liquidity pools, which introduces significant counterparty risk and higher operational costs. In contrast, Firefish functions as an open marketplace connecting borrowers and lenders, setting it apart in the market. Looking ahead, as Bitcoin becomes more integrated into the global financial system, Firefish is focused on meeting the growing demand for loans from Bitcoin holders. The company also plans to adapt its products and business strategy to cater to institutional investors, including facilitating investments through traditional fund structures to enable broader participation.
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