In the key development of Bitcoin holders, the Templar Protocol announced the launch of the mainnet, introducing the first “Cipher lending” protocol that allows users to borrow US dollar stubcoins against native Bitcoins without intermediaries. The launch comes as the institutional custody solutions manage an increasing share of Bitcoin supply, with Coinbase alone holding more than 10% of the circular BTC.
Already secured a $100 million loan commitment, the protocol combines decentralized multi-party computing (MPC) network technology with immutable smart contracts to ensure that user collateral remains secure and free of fraudulent intervention. The launch marks a departure from traditional centralized lending platforms and wrapped token solutions that dominate Bitcoin lending.
“The agency has arrived and is using centralized custody of companies such as Coinbase to cover up the BTC,” says Royal F00L, founder of the Knights of Templar’s Protocol pseudonym. “With the Knights Templar, you send BTC to immutable smart contracts running on a P2P network and send Stablecoins.”
The protocol introduces several important innovations, including permitted access without KYC requirements, open source architecture without management backdoors, and privacy-first design. At launch, the Knights Templars support native assets across Bitcoin and other chains.
The technology architecture employs a decentralized MPC network to protect Bitcoin deposits, while smart contracts automatically manage collateral and repayment processes. This removes the need for traditional custodians while maintaining security and efficiency.
“Bitcoin was created to replace banks rather than new toy assets Wall Street will finance and control,” adds Royal F00L. “Templeter will bring Bitcoin back to the right place in the borrowing and lending context.”
Although Ethereum’s Defi Ecosystem flourished, Bitcoin lending remains largely centralized. Temple’s solutions aim to achieve this dynamic change by offering decentralized lending options to Bitcoin holders.
The protocol’s roadmap includes implementing additional privacy features, such as zero-knowledge protection against privacy differences and predatory liquidation. Templar is integrated with a variety of prime brokers and wallet providers to expand accessibility.
This development is at a critical time in the Bitcoin market as demand for decentralized financial services continues to increase. The Knights of Templar’s approach to enabling the loan of native assets without wrapping or bridging can set new standards for cross-chain defi interactions.
Temple’s mainnet is now available for documentation and support through its official channels and is now available live through its website. The team emphasizes its commitment to expanding the protocol’s capabilities and maintains core principles of unauthorized access and user sovereignty.
This post Templar launched native Bitcoin lending without an intermediary.
