Case studiesBitcoin-backed lending

BTC Backed: wallet and multisignature escrow engineering

BTC Backed’s lending workflow required a backend and wallet that could coordinate collateral without giving one participant sole signing authority. Nelson P.’s contribution covered the backend, Bitcoin wallet and multisignature escrow.

Business
BTCBACKED AG
Sector
Bitcoin-backed lending
Scope
Backend, wallet and multisignature escrow
Contributor
Nelson P.
Editorial illustration: a small metal vault with an orange ingot and three key components
AI-generated editorial illustration of the project’s domain.

Loan operations depended on the rules controlling collateral.

The product connected borrowers, lenders and Bitcoin collateral. Its central engineering requirement was the authority to move that collateral: the transaction flow needed to express the responsibilities of the borrower, lender and platform.

The application also needed contract state, loan-health information, pricing, notifications and an auditable connection to on-chain activity. Those responsibilities had to agree with the wallet’s transaction and signing rules.

Connect the loan lifecycle to a Bitcoin wallet and signing flow.

The wallet layer used Bitcoin Core for address generation, transaction construction, on-chain monitoring and fee estimation. Partially Signed Bitcoin Transactions coordinated the signing flow for an escrow requiring two of three keys.

Backend services covered contracts, escrow, loan health, liquidation, offers, disputes and notifications. The platform signing-key design used an AWS Nitro Enclave, while a self-hosted fee service had public mirrors as fallback.

What the workflow includes

  • Construct and monitor Bitcoin transactions through Bitcoin Core.
  • Coordinate borrower, lender and platform signing with PSBTs.
  • Connect contract state and loan-health services to collateral operations.
  • Isolate the platform signing service with AWS Nitro Enclave.

Project details

The BTC Backed dashboard showing total loan value, locked BTC, LTV risk distribution, next expiry, borrow and lend limits, and smart alerts

Project materials showing the workflows and interfaces described in this case.

Product walkthrough

Backend, wallet and multisignature escrow. The delivery section explains the workflow demonstrated here.

A backend that carries the contract through collateral operations.

The engineering connected the loan lifecycle, wallet operations and multisignature escrow in one backend. The case concerns that application and custody-control design; the two-of-three rule describes signing authority, not a guarantee against financial loss.

What this means for the technology owner.

A handover for financial infrastructure must identify signing authority, key recovery, price inputs and transaction-state handling. Changes to those components require domain expertise and explicit acceptance criteria. Technology ownership starts with understanding those boundaries before changing the code.

The technology ownership checklist →

RustBitcoin CorePSBT multisigAWS Nitro EnclaveReactAWS

Project contribution: Nelson P.. The scope described above identifies the work behind this case.

BTC Backed — project link

Editorial review: Ego Eimi · Updated September 6, 2026 · About the team

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