Security is not a feature. It's the architecture.
Every decision we make starts with one question: does this protect client assets?
The Five Pillars
No Rehypothecation
Your Bitcoin is yours. We never lend it out, use it as collateral for our own borrowing, or allow any third party to access it. It sits in a dedicated, segregated address for the duration of your loan. This is not a policy we can override - it is built into the custody architecture.
No Altcoins
We accept Bitcoin as collateral. Nothing else. Altcoins introduce liquidity risk, correlation risk, and valuation complexity that we refuse to take on. Bitcoin is the most liquid, most battle-tested digital asset in existence. That's the only collateral standard we're willing to build on.
No Customer Deposits
Reserve is not a bank. We do not accept deposits, we do not offer savings accounts, and we do not promise returns on idle capital. This means there is no 'bank run' scenario. Lender capital is deployed into specific, identified loans - not pooled into an opaque balance sheet.
No Corporate Leverage
Reserve does not borrow against its own balance sheet. We do not take on debt to fund operations or growth. The company operates from equity capital and operational cashflow. This eliminates the leverage risk that destroyed Celsius, BlockFi, and others.
No Yield Chasing
Our 50% LTV ratio means every loan is 200% overcollateralised. We could offer higher LTVs and charge more - but that increases risk for everyone. We've chosen to be conservative because we intend to be here for decades, not just cycles.
Institutional-Grade Custody
Client collateral is held with leading institutional custodians (BitGo/Fireblocks) using multi-signature security, geographic distribution, and insurance coverage. All custody is segregated - meaning your Bitcoin is held in a dedicated address, legally separate from Reserve's operational funds and other clients' assets.
What went wrong - and why it can't happen here
Between 2022 and 2023, several major crypto lending platforms collapsed: Celsius, BlockFi, Voyager, and others. In every case, the failures shared common traits: rehypothecation of client assets, unsecured lending, corporate leverage, and commingled funds. Reserve was designed specifically to avoid every one of these failure modes. Our architecture makes these risks structurally impossible, not just policy-prohibited.
Transparency by default
Reserve is building toward regular proof-of-reserves attestations - cryptographic verification that all client collateral is held in full. Details on timing and methodology will be published on this page as we approach launch.