Cred provides USD loans, collateralized by XRP

As per the press release Cred, one of the crypto-backed lending firms would offer USD loans by using XRP as collateral. So all the XRP holders are served with the opportunity to save their XRP long term without the need to sell or incur tax consequences. The announcement also says that all the XRP holders of several countries could borrow as low as single-digit interest rates when they visit and click “Get Early Access.”

Read more at BusinessWire

Bloqboard- New Kid in the Crypto lending Space

Bloqboard Co-founded by Alex Bazhanau and Bahachuk, allows users to share their cryptos. The firm is offering a lending platform enabling peer-to-peer cryptocurrency lending via smart contracts. The firm lets you share your ERC20 tokens with your buddies, and, in theory, they have to pay you back. The firm recently raised $1.2 million from POlychain Capital to launch a lending system powered by decentralized lending protocols.

Read more at techcrunch

Ledn, First in Canada to Offer Crypto-backed loans.

Ledn created by Mauricio Di Bartolomeo will offer credit to businesses and consumers in Canada where about 5% of people use Bitcoin. The platform has four easy steps to avail the loan. The customer will send the application via Ledn and BTC as collateral. On successful verification , the customer is eligible for the loan and the firm sends the to customers in fiat.

The borrower needs to make monthly payments of interest on the loan until they are through. After that, they can pay the principal and Ledn will give them back their BTC. Ledn is funding these loans based on money it got from several funding rounds. The plan is to raise $50 million according to the founder.

Read more at bitcoinexchangeguide

Crypto-backed Loans in India

In our last posts, we spoke about How Crypto Backed loans are different from peer-to-peer loans, what are the different types of crypto loans, advantages of crypto-backed loans, Risks associated with crypto lending, crypto lending platforms in US, Crypto Lending Platform in UK and Crypto Lending Platform in Europe. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would talk about different crypto lending platforms in India

While India is still figuring out should they treat cryptos as commodities or ban crypto trading, a startup in India Nuo Bank with their product getLend is offering lending services. Let’s take a closer look –

Crypto Lending Platforms in India

Nuo Bank

Nuo a start-up from India aims to offer a decentralized and transparent debt platform. It is a Blockchain based Bank that allows you to buy, hold, lend, loan cryptos on the Ethereum network. They have launched an Android app, that offers the flexibility of buying cryptos and storing it as well. Nuo Lend another platform helps in connecting borrowers and lenders. Nuo lend comes in three flavors-

Peer to Peer Loans

It is a lender-borrower network where a borrower could submit a loan request and deposit his ERC20 tokens onto the safe wallet with NuoBank.Using the decentralized lending platform the lender could earn an interest rate by funding a loan and the borrower in need of money could use his crypto tokens to get extra cash.

Bonds Marketplace

A financial marketplace to buy, sell and discover non-fungible tokenized assets traded as ERC71 bonds through auctions.

Margin Funding

A peer to peer network of margin traders with shared liquidity and up to 10x leverage. Before digging deep into the business model, let’s figure out what is crypto margin trading?

What is Crypto Margin Funding?

In simple terms, its Crypto Margin trading is where a lender offers a loan to a trader to invest. While the lender earns interest on the debt offered, the trader could earn a profit[with an increased investment]. Let’s take an example – if you are staking 5$ with a 5:1 leverage would mean you are placing a bet of 25$ in the open market. Now, as a trader, you would need to pay the borrowed money and also the fees or the interest attached to it. Hence, traders expectations and speculation is that the gain would be sufficient to cover the interest and make him earn a profit.

How Nuolend Margin Funding Works?

The NuoLend platform would connect Margin traders and lenders so as to facilitate margin trading. Each Margin trader needs to put his ERC20 tokens as collateral to get funded, and if the value is dipped, the collateral would be liquidated to pay the loan amount.

Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

If you liked our post, please follow us on twitter [@getnuo] to get latest updates and insights.


3 Rules of Crypto backed Loans Every Investor Should Know

Investment of any sort is risky and is mostly played by rules by all genres. Even a child when he sets up a trade of toys exchange quickly analyze benefits he could reap and risks he could face, then how could the world of crypto backed loans be spared? Today’s post is all about the rules, precautions to be taken while signing up for crypto backed loan.

Three Rules of Crypto backed loans


Rule #1 – Diversify your Portfolio

Distributing your investment to multiple borrowers based on loan amount, geography or duration is the first rule to be followed. So, for example, if you have planned to invest 10 BTC amount, then break it into chunks, i.e., funding 2BTC for five borrowers that is a mixed bag of long term or short term and belongs to developing and developed nation.

By choosing among the developed/developing nation, you are reducing your risk of default, and while long-term loans help in reducing the workload of follow-ups, short-term offer the benefit of reinvesting and improving liquidity. So choose accordingly.

Rule #2 – Know the Risks

While lending offers benefits of high returns, it is still in a nascent phase with very less awareness. So if the borrower fails to repay the amount, would it lead you to bankruptcy? Or analyze the amount of how much you could lose say the borrower is new and does not have much knowledge on the latest technology, so make sure all of your eggs are not in the same basket. Crypto backed loans are high on returns but also come with high risk.

Rule #3 – Analyse, Learn and Realign your investing techniques

Well, there is no rulebook of crypto backed loans technique that one could follow and eliminate risk, but make sure once every fortnight or even monthly analyze your crypto portfolio in terms of returns and realign or redistribute to make it profitable.

All it takes is time and perseverance to get good returns on crypto backed loans; it’s like sowing the seeds and watering it daily until you see the flowers and finally fruits. However, beware of harsh sunlight, thunderstorm, weeds, and pests that could harm your investment.

Happy investing!

If you liked our post, please follow us on Twitter [@getnuo] to get the latest updates and insights.

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