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Lava vs. Unchained: A custody pivot reshapes the comparison.

Last reviewed Common questionsMethodology

About Lava

Loans

Lava is a US-headquartered bitcoin-only lender founded in 2022. Its original product, launched on the Lava Loans Protocol v2 white paper in October 2023, used Discreet Log Contracts (DLCs) to create 2-of-2 collateral where the borrower retained one key. In November 2025, Lava migrated all users to a fully custodial "distributed key protocol" via a forced app update — abandoning the self-custody architecture and drawing public criticism. The current product is the Bitcoin Line of Credit (BLOC) at 5% interest plus a 2% annual capital charge (~7% effective), with a $100 minimum and no fixed maturity. Lava's terms reference Cayman Islands governing law and no US state lender licenses have been publicly disclosed.

Who each is for

Lava is for

Borrowers who want headline rates starting at 5%, a $100 minimum, and a smartphone-first product, and are comfortable with custodial collateral handling after the November 2025 architecture change.

Unchained is for

US business borrowers who want a regulated US lender (NMLS-licensed) with multisig collateral verifiable on-chain throughout the loan, and an unambiguous lender of record.

Lava
Unchained
Trading fee
Not applicable
1.00% standard tier. 0.75% Signature tier.
Minimum purchase
Not applicable
$2,000
Recurring / DCA
Not applicable
Not offered
OTC / large trades
Not applicable
Primary buy channel for all vault clients.
Settlement
Not applicable
Into your multisig vault.
Custody model
Not applicable
Collaborative multisig
Key distribution
Not applicable
Client holds 2 keys, Unchained holds 1 key.
Default structure
Not applicable
2-of-3
Other configurations
Not applicable
Quorums up to 15-of-16 are supported on the Signature tier. Connections allow sharing keys with trusted parties.
Recovery if a key is lost
Not applicable
Loss of 1 key is recoverable. The remaining 2 keys still meet the 2-of-3 threshold.
Hardware wallets
Not applicable
Ledger, Trezor, Coldcard, BitBox, Blockstream Jade
Annual cost
Not applicable
$250/year per vault
Default process
Not applicable
Executor locates 1 client key and contacts Unchained with the Inheritance Protocol documents.
Heir technical knowledge required
Not applicable
No bitcoin knowledge required. Executor follows written instructions.
Waiting period
Not applicable
None
Executable without company involvement
Not applicable
Yes. The client's 2 keys remain operable independently of Unchained.
Cost or included tier
Not applicable
Included with Signature. Protocol materials are also available separately.
Account types
Not applicable
Traditional, Roth, SEP
Key control
Not applicable
Client holds 2-of-3 keys in a dedicated IRA vault.
IRA custodian
Not applicable
Fortis Bank (Colorado-chartered, FDIC-supervised)
Account minimum
Not applicable
No minimum balance. $2,000 minimum per trade.
Trading fee
Not applicable
1.50% per trade
Annual fee
Not applicable
$250/year per IRA vault
Lender of record
Not clearly disclosed for US borrowers. Terms reference Cayman Islands governing law; no US state lender licenses publicly disclosed.
Unchained (direct lender)
Eligible borrowers
Individuals and businesses globally. Minimal KYC for many product flows.
Business entities only (LLC, corporation, single-member LLC)
Minimum loan
$100
$150,000
Interest rate
5% APR (1-month term) to 11.5% (12-month term) on fixed-term loans. BLOC product at approximately 7% effective rate.
12.0%
LTV at origination
Up to 50% at origination. Specific margin call and liquidation thresholds not publicly published.
50% at origination
Collateral custody during loan
Custodial as of November 2025. Originally DLC-based 2-of-2 multisig where the borrower retained one key; that model was discontinued via a forced app update. Lava now uses a "distributed key protocol" with institutional custodians; specific custodian(s) not publicly named. On-chain analysis traced post-pivot funds to Kraken (unconfirmed by Lava).
Unchained and Fortis Bank each hold one key, which prevents any party from moving bitcoin unilaterally.
RIA
✕
✓
DAF
✕
✓
Trust entity
Not applicable
Gannett Trust Company, LLC
Jurisdiction / charter
Not applicable
Wyoming (chartered May 2025)
Services offered
Not applicable
Personal trust administration, corporate bitcoin treasury, qualified custody, dynasty trusts, and inheritance and estate planning.
Key control
Not applicable
Client-directed. Supports both collaborative custody and qualified custodian configurations.
Minimum assets
Not applicable
Not disclosed
Tier name
Not applicable
Signature
Annual cost
Not applicable
Personal: $6,000 first year, $4,500 renewal. Business: $7,500/year.
Dedicated contact
Not applicable
Dedicated relationship manager with same-day emergency support.
Included services
Not applicable
Vault setup, 2 premium hardware wallets, security reviews, ongoing education, and inheritance setup.
Founded
2022
2016
Client funds lent
Not disclosed. Custodial model since November 2025; specific custodian not publicly named.
Not applicable. No client funds are held, and loans are not rehypothecated.
Proof of reserves
Not disclosed
Not applicable. The client holds their own keys, verifiable on-chain.
SOC certifications
Not disclosed
SOC 1 Type II and SOC 2 Type II
US availability
Marketed in the US. No US state lender licenses publicly disclosed; regulatory standing is unresolved.
Most states (varies by product)
International availability
Yes. Global. Minimal KYC for many product flows.
No

Common questions

Yes, originally. Lava's October 2023 white paper described a Discreet Log Contract (DLC) protocol where collateral sat in a 2-of-2 multisig with the borrower holding one key. In November 2025, in conjunction with a $200M fundraise, Lava migrated all users to a fully custodial model via a forced app update; the borrower no longer holds a key. The change drew public criticism from prominent bitcoin builders. As of mid-2026, Lava's collateral model is custodial despite some marketing materials still referencing self-custody language.
Unresolved. Lava's terms reference Cayman Islands governing law and no US state lender licenses (NMLS, state regulatory loan licenses) have been publicly disclosed. Industry observers have raised questions about Lava operating custodially in the US without visible state-level licensure. Unchained operates as an NMLS-licensed US lender with disclosed state coverage.
Lava's headline rates are materially lower — 5% APR on a 1-month fixed-term loan and approximately 7% effective on the BLOC product. Unchained's commercial rate is 12.0% APR at 50% LTV. The pricing reflects different structures: Lava's custodial model with global retail reach versus Unchained's multisig collateral with a borrower-held key, US business-entity underwriting, and a $150,000 minimum.
If you are a US business entity and the size and structure fit, the migration path is: take out an Unchained loan against fresh bitcoin collateral in a new multisig vault, pay down the Lava loan, and Lava releases the collateral on-chain to a wallet of choice. Unchained's collateral sits in a 2-of-3 multisig where the borrower holds 1 of 3 keys and can verify the bitcoin on-chain throughout the loan. Unchained's minimum is $150,000, so this option only fits larger positions.

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About this guide

These comparisons are maintained by Unchained. We have tried to represent every service accurately and fairly, and where another service does something well that Unchained does not, we say so. Unchained appears as the reference point throughout because every page is built around a single question: how does this service differ from Unchained? That framing is why Unchained is more prominently featured, not because we consider it the default right answer for every reader.

Disclaimer: Unchained's product and service availability may vary by state. Nothing on this page is investment, tax, legal, or financial advice. Investment advisory services are offered only through Gannett Wealth Advisors. Consult your own advisors before making any financial decision. All financial products involve risk, including loss of principal. Bitcoin is volatile, and past performance does not guarantee future results.

This comparison is provided for informational purposes only and is current as of May 2026. Information about other companies is compiled from publicly available sources, including each company's documentation, regulatory filings, terms of service, and third-party reviews. Offerings, fees, terms, and state availability change frequently and may have changed since publication. Verify all information directly with each company before transacting.

References to other companies are for comparison purposes only and do not imply endorsement, partnership, sponsorship, or affiliation. All third-party names and marks are the property of their respective owners and are used for identification only. Reviewed quarterly; corrections will be addressed within five business days. If you represent a company listed here and/or believe information is inaccurate, fill out a feedback form.

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