BitPay today launched HODL Pay, a new payment feature designed to let crypto users borrow stablecoins against their crypto holdings and spend without liquidating their assets.
HODL Pay enables consumers to use their deposited collateral on Aave, a leading DeFi lending protocol, to borrow stablecoins and immediately spend them through BitPay’s merchant network. The service is live across multiple Layer 2 networks including Ethereum, Arbitrum, Polygon, Optimism, and Base, aiming to offer low-cost and fast settlement to users.
“Crypto isn’t just about speculative investing. It’s about financial ownership, freedom, and choice,” said Bill Zielke, Chief Marketing Officer at BitPay. “With HODL Pay, BitPay gives users an innovative way to spend confidently today without giving up their future growth.”
The timing of the launch aligns with a broader trend in crypto: more users are reluctant to part with their long-term holdings as prices show signs of another bull cycle. By borrowing stablecoins like USDC or DAI instead of selling Bitcoin or Ethereum, users can maintain their exposure to potential upside while unlocking immediate liquidity for purchases ranging from luxury cars to everyday retail.
Through its integration with Aave, HODL Pay allows any user with a supply position—meaning crypto deposited as collateral—to instantly borrow against it. After connecting their wallet via WalletConnect, users can generate a BitPay invoice and complete the transaction at checkout using the borrowed stablecoins.
From a merchant perspective, the rollout requires no additional integration. Businesses continue to receive next-day settlements in fiat, crypto, or a combination of both—one of BitPay’s long-standing advantages. BitPay claims that HODL Pay will help merchants capture higher-value transactions by appealing to long-term holders who typically avoid selling.
Nick Dossa, Dealer Principal at Vegas Auto Gallery, one of the many luxury retailers that accept crypto through BitPay, welcomed the move. “We are excited to see new options like HODL Pay that give crypto holders more flexibility in paying for luxury vehicles. It is a forward-looking solution that will help deepen our connection to the crypto community,” he said.
The launch of HODL Pay comes as BitPay continues its push to expand Layer 2 support and cement its role as a crypto payments leader amid growing competition from fintechs like MoonPay and Coinbase Commerce. While rivals focus on direct wallet integrations or off-ramps to fiat, BitPay is positioning itself squarely at the intersection of DeFi and payments.
With crypto lending rebounding and institutional DeFi adoption on the rise, BitPay’s move could tap into a growing segment of users who want to leverage their digital wealth without liquidating it. It also signals growing confidence in the security and scalability of DeFi protocols like Aave, once considered niche, now at the core of mainstream applications.
BitPay’s Merchant Directory lists hundreds of businesses—from tech retailers to real estate agents—now accessible via HODL Pay.
As crypto becomes increasingly intertwined with conventional financial behaviors, BitPay is betting that spending without selling could become a defining theme of this cycle.
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Image Credits: BitPay, Canva