BitPay bridges DeFi and retail with HODL Pay feature

The solution allows crypto holders to borrow stablecoins against their digital assets and use those funds to pay BitPay invoices across a wide range of merchants. With HODL Pay, BitPay aims to strengthen the link between DeFi protocols and everyday commerce. The service enables users to remain invested in their crypto holdings while accessing liquidity through stablecoin loans. These funds can then be used to pay for goods and services without triggering a taxable event associated with asset liquidation. The process relies on existing DeFi infrastructure, specifically the Aave protocol. Users must have a supply position on Aave to serve as collateral. Once this is in place, stablecoins can be borrowed and used at any BitPay-supported merchant. Integration for consumers and merchants For users, HODL Pay is fully integrated into the BitPay checkout experience. They can initiate a transaction by shopping with BitPay merchants, accessing BitPay Bill Pay, or buying gift cards. Payments are completed by connecting a crypto wallet using WalletConnect and borrowing against collateral directly within the checkout flow. Loan management and repayment remain accessible through the Aave dashboard. BitPay supports this feature across major Layer 2 networks, including Ethereum, Polygon, Arbitrum, Optimism, and Base, ensuring lower transaction fees and faster settlement. From a merchant perspective, HODL Pay provides access to a broader segment of the crypto user base: those who prefer holding long-term but are now able to spend through DeFi-based borrowing. This can lead to higher-value transactions, particularly for high-ticket categories like luxury retail, auto sales, and travel. HODL Pay requires no additional integration or changes to merchant systems and maintains BitPay’s standard next-day settlement, in fiat, crypto, or a mix of both. The feature is now live and available for all BitPay-supported merchants. Interested customers can explore participating businesses through the BitPay Merchant Directory.