Atomic Loans and Bidali are closing the loop on stablecoin spending and DeFi
I have Bitcoin. I have real world expenses. But I don’t want to sell my Bitcoin. Now what?
This is a common question that comes up frequently. Outside of trading and DeFi, where it’s mostly traders borrowing, there has not been an exuberant amount of utility for stablecoins. There are a few merchants that will accept them, but they are sparse, and include few, if any major brands.
The question of how to get access to liquidity for expenses without liquidating Bitcoin is one that comes up frequently. Of course there are existing solutions for this, but they require you to give them custody of your Bitcoin.
This is a problem that the Atomic Loans team has been hard at work solving. Thanks to Atomic Loans, getting access to liquidity in a non-custodial manner is a real possibility. You can lock up Bitcoin as collateral, and get access to a loan in a stablecoin like DAI or USDC.
Outside of trading, and outside of DeFi or trading there has not been an exuberant amount of utility for stablecoins. There are a few merchants that will accept these stablecoin, but they are sparse, and include few (if any) major brands.
According to Bloomberg USDT was the most transacted crypto currency of 2019 it only makes sense that DeFi apps move more towards offering stablecoin as principal to loans opposed to FIAT, or their own token.
To date, this has not solved the problem of actual utility. What can a company or individual do once they have their stablecoin? Maybe you can pay your staff, maybe you can pay suppliers, but inevitably even those people will run into the same problem — what can you actually buy with your stablecoin?
Buying With Stablecoin Today
With Atomic Loans & Bidali
Enabling people to easily use stablecoins to pay for goods and services directly is what will actually fuel real adoption from people outside of the early crypto-enthusiasts. Without this, we are stuck with speculative borrowers that are chasing markets and bull runs. If it’s more expensive or harder to get a loan in DeFi and actually put that capital to work, then we’ll be stuck in the speculation phase for forever.
To move to the utility phase it needs to be possible for someone in Latin America, Africa, Europe or the USA to take out a loan and then use that money to pay their bills or buy food. When that happens, then we’ll see an explosion in usage. Inch by inch, we’re getting closer.
Atomic Loans allows Bitcoin holders to get access to stablecoin liquidity without having to sell their Bitcoin. One major use case is the ability for Bitcoin holders to be able to pay for different expenses while remaining exposed to Bitcoin price. We’re extremely excited to partner with Bidali to provide users a seamless experience to purchase gift cards for those real-world expenses with the stablecoin they borrow. — Tony Cai
Crypto-backed loans for stablecoins enable people to quickly take, what many would consider investment assets, and immediately turn them into digital currency that is more liquid and stable — and ultimately better money. We are happy to see the Atomic Loans team is tackling this for the Bitcoin. However, once you have locked up your collateral and received this better currency, what can you do with it? You are forced to cash out, and go back to the traditional, inefficient banking rails. Nothing really changes. We are really excited about this because it really changes the dynamic of how crypto-backed loans for Bitcoin works, providing real immediate utility, and ultimately unbundling banking and payments so that the user has more control. — Eric Kryski
About Atomic Loans
Atomic Loans is a protocol for Bitcoin-backed loans. They allow you to lock Bitcoin as collateral in a non-custodial Bitcoin script and get access to a stablecoin loan like DAI or USDC. Headquartered in Toronto, Canada, their protocol allows anyone to get access to a Bitcoin-backed loan, regardless of jurisdiction. See more at: https://atomic.loans/
About Bidali
Bidali is a payments company providing infrastructure that bridges the gap between traditional finance and the next generation of money. Headquartered in Calgary, Canada, their proprietary blockchain payments technology streamlines global commerce and enables anyone with an internet connection to spend cryptocurrency and businesses to receive it, all over the world. See more at: https://www.bidali.com/
Atomic Loans integration will go live with Bidali in Q2 of 2020.
If you have stablecoins and want to spend today, Bidali supports 11 types of stablecoins today where you can purchase gift cards from 200+ brands, as well as top up your phone in 120+ countries. Shop Now.
