Kraken-affiliated lender Payward Interactive holds the power to liquidate a crypto firm’s entire Bitcoin collateral without warning if the price falls to $45,094, according to filings reviewed by CryptoSlate.
USBC, a company developing a tokenized-deposit offering, pledged 479 Bitcoin as collateral for an $18 million loan facility as of July 31, 2026. At that date, the Bitcoin was worth approximately $30.1 million. The loan carries an 8.5% annual interest rate and matures on July 28, 2027.
Under the loan agreement, Payward Interactive can trigger immediate liquidation at a 120% collateral ratio, equivalent to a Bitcoin price of approximately $45,094. This liquidation can occur without notice and without waiting for any response period. At a 130% collateral ratio (roughly $48,852 per Bitcoin), Payward may issue a collateral call requiring USBC to post additional collateral or repay part of the loan within 24 hours.
The liquidation threshold is not static. The price trigger changes as the loan balance grows from accrued interest and fees, and as collateral values fluctuate. As of July 31, USBC’s loan-to-value ratio stood at 59.8%, with an initial margin requirement of 150%. If liquidation occurs, Payward charges a 1% fee on the sale proceeds.
Recent Facility Growth
USBC increased the facility in stages. In June 2026, the company disclosed a $15 million balance secured by 336 Bitcoin. On July 28, USBC drew an additional $3 million, bringing the facility to $18 million and raising collateral to 479 Bitcoin. As of July 31, no collateral call, mandatory repayment, or liquidation had occurred.
Financial Position
USBC reported a $46.3 million net loss in the first half of 2026, including $29.7 million in unrealized digital-asset losses and $11.2 million in stock-based compensation. The company held $2.982 million in cash and cash equivalents as of June 30. It also recorded a $2.5 million credit-loss provision and recognized a $12 million non-cash deferred income-tax benefit.
Loan proceeds are being used primarily to develop the tokenized-deposit offering, including costs paid to affiliate Vast Holdings. Payward Financial, branded as Kraken Financial, serves as the custodian for the Bitcoin collateral.
