Bitcoin-backed credit is becoming the bridge between the crypto market and traditional finance, and Norwegian banks are now preparing to enter the space, Andre H. Johnsen, CEO of Norlend, argued at an Oslo Blockchain Meetup last week.
Opening his presentation, Johnsen took the audience on a journey through the history of money, from barter and coins to the paper era and today’s credit-based system, where over 92% of circulating value exists as numbers on bank balance sheets, not physical cash.
“Most of what we call money is actually credit, a promise, not settlement,” he explained.
With the emergence of Bitcoin and blockchain, he added, we finally have digital money that settles like cash, not IOUs, a fundamental shift in how value moves and clears.
Johnsen drew parallels between traditional collateralized lending, like mortgages and securities-backed credit, and the evolving world of digital assets.
“Our generation doesn’t own as much real estate or equity, but we do own crypto. That’s our collateral.”
He emphasized that October’s record-breaking liquidation event, which wiped out billions in overleveraged positions, wasn’t a failure of the model, but a reminder of risk discipline. “The issue wasn’t crypto lending itself, it was taking too much risk too close to the limit,” he said.
According to Johnsen, Bitcoin is the superior collateral asset to equities, unmatched in liquidity, transparency, and accessibility. Trading around $60 billion daily, Bitcoin offers more consistent volume than most major stocks combined, and unlike securities markets, it operates 24/7. Its programmability also enables smart contract–based settlement, reducing friction and risk.
While the Bitcoin-collateralized credit market remains smaller than the traditional securities lending industry, Johnsen noted that it’s growing exponentially, and on a trajectory toward integration with banks and regulated institutions.
Owned by K33, Norlend provides white-label infrastructure that allows banks and fintechs to offer Bitcoin-secured credit directly through their own platforms.
Johnsen highlighted K33 Loans as a working example:
“Deposit BTC, receive USDC instantly. The backend runs on DeFi, users don’t need to see it.”
Johnsen concluded that credit transforms assets from holding value to creating value.
“Bitcoin-backed lending lets you access liquidity without selling upside,” he said.
By bridging crypto speculation and real-world financial utility, Norlend is demonstrating how Bitcoin can evolve from a volatile investment into the foundation for a new kind of financial infrastructure, one that’s programmable, transparent, and aligned with modern banking.
