Bitpay has unveiled HODL Pay, an innovative service that connects decentralized finance lending with retail payments, enabling cryptocurrency holders to maintain their investments while accessing spending power. The new offering allows users to collateralize their crypto assets on Aave and borrow stablecoins that can be immediately used for purchases across Bitpay’s extensive merchant network. This solution addresses a common dilemma for cryptocurrency investors who want to utilize their digital assets’ value without sacrificing potential future appreciation, effectively bringing DeFi functionality into practical everyday commerce.
The user experience is streamlined for both new and existing Aave users, requiring them to simply generate a Bitpay invoice at checkout, connect their crypto wallet through Walletconnect, and borrow stablecoins against their collateral. Loan management happens through Aave’s dashboard, giving borrowers complete control over repayment terms and timing. For merchants, HODL Pay requires no additional setup or integration beyond their existing Bitpay acceptance, while still providing the same next-day settlement options in fiat currency, cryptocurrency, or a combination of both that Bitpay traditionally offers.
Currently operating across multiple networks including Ethereum, Arbitrum, Base, Polygon, and Optimism, HODL Pay represents Bitpay’s commitment to expanding layer two payment options for Web3 users. As Bill Zielke, Bitpay’s Chief Marketing Officer, explained, the service gives users “an innovative way to spend confidently today without giving up their future growth.” This value proposition is particularly appealing for high-value purchases, with Nick Dossa of Vegas Auto Gallery highlighting how HODL Pay provides flexibility for cryptocurrency customers purchasing luxury vehicles. The service is now available globally to all merchants in Bitpay’s network, potentially transforming how cryptocurrency holders interact with their digital assets in retail environments.
