You Can Now Use Bitcoin as Collateral When Applying for a Personal Loan

By Josiah Wilmoth

You can now stake your bitcoin holdings as collateral when applying for a USD-denominated personal or commercial loan.

You Can Now Stake Bitcoin as Loan Collateral

The cryptocurrency markets have experienced unprecedented growth in 2017, and many bitcoin investors have accumulated significant wealth. However, many of these investors believe that the bitcoin price continues to have significant long-term potential, so they are reluctant to sell their holdings for cash when they need liquidity.

Financial services firm Unchained Capital aims to fill this void.

Earlier this week, the lending startup began offering bitcoin-secured loans to the U.S. public. Through Unchained Capital, borrowers can obtain personal or commercial loans worth up to $1 million at a 50 percent loan-to-value ratio, meaning that they can borrow $1 for every $2 worth of bitcoin they deposit as collateral. Loan terms range from three to 24 months, and interest rates vary from 10 to 14 percent APR.

“We believe that crypto investors should have the opportunity to avail themselves of proven financial instruments. To start, we’re focused on offering loans secured by Bitcoin, and we’ll soon be offering loans secured by Ethereum as well,” said Joseph Kelly, CEO and co-founder of Unchained Capital. “These assets may still be novel, but that doesn’t mean that achieving any kind of leverage needs to be complex. We don’t want individuals who created wealth for themselves to lose it because they had no financial freedom.”

Read More: http://strategiccoin.com/bitcoin-collateral-personal-loan/