Crypto platform Backpack has expanded its services in Japan with the launch of a new Borrow and Lend feature. The rollout makes Japan the first market where Backpack offers crypto-backed lending at launch. The feature allows users to earn yield on assets or borrow funds without selling their holdings. The company confirmed the update on December 22. The service supports major assets including Bitcoin, Ether, Solana, XRP and USDC. However, Backpack clarified that the feature does not include spot or perpetual trading at this stage.
Borrow and Lend Goes Live for Japanese Users
With the new product, users can lend supported crypto assets to earn variable returns. At the same time, they can use those assets as collateral to borrow funds, such as USDC. This setup lets users access liquidity while maintaining exposure to their crypto positions. Backpack positioned the feature as a “use without selling” option.
Backpack 宣布在日本率先上线 Borrow / Lend 功能，支持用户在不卖出资产的情况下，通过出借获取浮动收益，或以 BTC、ETH、SOL、XRP、USDC 等作为抵押借入资金，该功能同时纳入 Backpack Point 积分体系。Backpack 提醒，借贷业务存在清算风险，当前尚未覆盖现货与合约交易。https://t.co/qpanQsvz35
— 吴说区块链 (@wublockchain12) December 22, 2025
This approach targets long-term holders who want flexibility without exiting the market. The platform also confirmed that the Borrow and Lend activity is eligible for its Backpack Points rewards program. Which is now open to Japanese residents. Until now, Japanese users could not participate in the points system. This change marks a broader expansion of Backpack’s localized offerings in the country.
Auto-Lending and Withdrawal Rules Explained
Backpack uses an automatic lending model. Once a supported asset is deposited, it is immediately lent out under a seven-day maturity loan. Interest begins to accrue right away. However, this structure comes with restrictions. Assets under auto-lending cannot be withdrawn during the seven-day loan period. If a user adds more of the same asset, the loan term resets. As a result, the withdrawal lock extends from the latest deposit time.
The withdrawal rules apply separately for each sub-account and asset type. Interest continues to accrue unless a withdrawal request is pending. Estimated yields can change depending on market conditions. Backpack emphasized that auto-lending is not optional. It is always active and does not require manual setup by users.
Liquidation Risk and Scope Limitations
While the feature offers new flexibility, Backpack warned users about risks. Borrowing against crypto carries liquidation risk. If asset prices fall sharply, collateral may be sold to cover the loan. The platform urged users to fully understand the mechanism before borrowing. It also clarified that the current launch only covers Borrow and Lend services. Spot trading and derivatives are not included in this rollout. This limitation suggests a phased expansion strategy. Backpack appears focused on controlled product releases, especially in regulated markets like Japan.
Japan Expansion Signals Broader Strategy
Japan has one of Asia’s strictest crypto regulatory frameworks. Launching lending services there signals confidence in Backpack’s compliance setup. It also reflects growing demand for yield-based products among Japanese crypto users. By starting with Borrow and Lend, Backpack is tapping into a segment focused on capital efficiency rather than speculation. As regulatory clarity improves, more features may follow. Currently, the message is clear. Japanese users gain new tools, but risks remain and Backpack is taking its expansion one step at a time.
