Crypto Lending Platforms in UK

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, and crypto lending platforms in US. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would talk about different crypto lending platforms in UK.

A quick look on Google Trends for the term crypto loans indicates the growing interest of individuals, enterprises, and customers. The trend also suggests an opportunity for enterprises to tap onto and come up with innovative solutions, just as the startups from the UK are pioneering the art of crypto lending.

Google Trends - Crypto Loans
Google Trends – Crypto Loans

Crypto Loans Platform in UK

Kambo

Kambo values your crypto and offers blockchain based loans for long-term hold with an easy supply of cash. The company established in 2010 intended to provide individuals with cash without selling their cryptos. They have their offices in 18 countries and allow customers to avail loan against Bitcoin and Ether.

Their working model is simple where the user needs to sign up and specify the loan amount and submit the application. The borrower needs to transfer their cryptos on to the Kambo secured wallets, and within an hour 50% of the blockchain assets market value would be deposited into your bank account.

 

 Nebeus

Nebeus, a startup from London offers Loans by using Bitcoin as collaterals; they also have a Loan Calculator that could help you in analyzing the ROI of the investment made. The loan is usually dispersed within 24 hrs after submitting the loan request and could be availed by customers outside of the EU. It also provides users with the opportunity to have fiat loans against BTC and ETH for 20% interest rate. Nebeus also have other offerings like  Nebeus Prepaid card that allows the customer to use the card to get instant access to your crypto. You can also withdraw cash through ATM or pay in any shop. They also have a Digital Exchange that facilitates buying and selling of cryptocurrencies

Celsius

Celsius another start-up from UK  allows its customers to deposit BTC, ETH, LTC into a mobile wallet and earn a regular interest. In case the person is in need of cash, he could also opt for a crypto loan in Dollars where your cryptos are used as collateral.

With a tagline Crypto for the people, the interest earned via loans is redistributed to its HODlers in CEL token within the Celsius network

Ripio Expands its crypto lending platform across Latin America

As reported by Coindesk – Ripio an Argentinian startup is offering peer to peer microloans to all of its 200,000 bitcoin wallet users in Argentina, Mexico, and Brazil. Ripio mentioned it has 3,000 lenders on the marketplace issuing loans for up to $730.

The distinguishing feature of the Ripio lending model is that Ripio offerings are available to unbanked crypto users. Although the startup doesn’t have data on how many unbanked users are on its platform, a survey of 1,000 Ripio users revealed 19 percent didn’t have a credit card. They often fund their wallets by depositing cash at convenience stores that partner with Ripio.

Read more at coindesk.


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.

Crypto Lending Platforms in US

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 and Risks associated with crypto lending. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would know about different crypto lending platforms in US.

Most of the crypto lending platforms work in a similar fashion where they connect borrowers and lenders. The platforms are backed by assets that include gold or even real estate. Let’s take a closer look onto these crypto loans platforms –

Crypto Lending in US

Credible Friends

As the name suggests, Credible Friends are into Trust Based peer-to-peer lending, that is built on Bitcoin and enables anyone to quickly extend lines of credit to all of their trusted friends.

The working model is quite simple; the user needs to create an account/wallet on his phone [available for iOS and Android] and deposit the bitcoins. Create a contact list by inviting your friend’s through social media, and most importantly whom you can trust. Release the credit to your friend in need based on your risk assessment; the friend needs to pay you an interest amount decided mutually. Once the digital currency is transferred, your friend could use it for shopping or emergency. And once the friend settles the final amount, your money would be returned to you leading to deal closure.

BlockFi

BlockFi is another crypto lending platform that aims to innovate the crypto lending space by infusing new lending and debt products for crypto asset owners.

The working model is quite straightforward, where the borrower needs to submit a loan request, within 24 hrs the request is either accepted/rejected. Once the request is approved sign the loan agreement, deposit your collateral to BlockFi’s secured storage wallet, and loan amount would be released. One of the significant advantages of BlockFi business model is that you get interest in dollars/cryptocurrencies, and borrowers get dollars without even selling their cryptocurrency.

Unchained Capital

Unchained capital that offers Personal, Real Estate or Business loans supports Bitcoin and Ether currency only. The model is quite similar to BlockFi where you need to create your account/loan request, once it is approved to submit the collateral and loan amount would be released. However, Unchained Capital works with international borrowers as well, with a condition of the lending amount be $100 K.

SALT Lending

SALT Lending which was recently in the news to be acquired by a rival Nexo after the CEO departure is another crypto lending firm from the US. SALT an abbreviation of Secured Automated Lending Platform allows users to leverage their blockchain assets to secure cash loans. The beauty of the firm is that without selling your crypto assets, you can get a cash amount. They have recently expanded their operations into 20 new US states increasing their reach to 35 states. The company has also introduced a new program, i.e., Proof of Access (POA) program that offers members to modify their loan conditions by using the company’s SALT Token in

Poloniex

Poloniex, one of the top crypto-exchange also offers crypto-lending solutions to its customer base. The advantage of using their platform is a support to 12 cryptocurrencies for lending. However, they do not provide fiat lending.

What are the Risks of Crypto-backed loans?

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, and advantages of crypto-backed loans. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would be targeting the risks associated with crypto-backed loans or crypto lending.

No technology or concept is fool-proof, so while there are many advantages associated with crypto lending, there are some risks associated with it, that could be mitigated if you are an informed person. Here are some of the risks of crypto lending –

Platform Safety

There are two kinds of platforms that connect a borrower/lender in crypto lending. First being the firms offering their software solutions, connecting lenders/borrowers and charging a small fee for the platform. On such a platform, it is crucial to know about the security aspects followed by them. Has there been a past breach? If the data was hacked? Also, it would be good to know the kind of measures provided by the firm in case of hacking. Simply know all aspects of security measures and policies offered by the platform provider to safeguard your assets from being hacked.

The other entity is the online cryptocurrency community where borrowers/lenders interact directly with each other. In such cases, as it’s an independent contract executed by the borrower and lender, there are less/negligible chances of any assistance in case of disputes of defaults or in case of scams.

Default Rate

Blame it to regulation or difficulty is repaying the loan, but crypto-backed loans come with a possibility of higher defaulters when compared to peer to peer loans.

Volatility

Crypto market is up and running all throughout the day, so while arbitragers try to make a profit out of it. The lenders/borrowers might suffer a set back if the money repaid/borrowed has dipped throughout the day. In fact, many investors might see a possibility of seeing an assets’ value depreciated to a point where the debtor is better off defaulting than repaying the loan.

 

Refrences

finder, fastinvest.

Advantages of Crypto-backed loans

In our last posts, we spoke about How Crypto Backed loans are different from peer-to-peer loans and what are the different types of crypto loans. Continuing our discussion further on Everything you need to know about Crypto-backed loans, today we would be targeting the benefits of crypto-backed loans or crypto lending.

Involving blockchain technology into lending could make the product offerings cheaper, faster and much more transparent to borrowers and lenders. Transactions powered by Blockchain are instantaneous and indisputable, that also comes along with – no transaction fees clause. Fundamentally,  leveraging blockchain technology with peer-to-peer lending offers following benefits –

Negligible Transaction Fees

Under the P2P lending process, when a borrower initiates the loan request, it goes to a bank/financial institution’s that charge you fees for processing, documentation, or early payment charges, that was mostly applicable to the borrower. If we refer to Processing charges by Banks in India, it could go up to 20000 INR, on the other hand, crypto-backed loans do not have any processing or transaction charges. Only if you are using the platform [like Nexo, Nuo Bank, Ethlend, etc.], they might be charging you with a small amount. So crypto-backed loans come with a value of money when compared to P2P loans

No Paper Work or Need of Bank Accounts

While opting for Crypto-to-Cash loan you may need a bank account, but otherwise, there is no need of any paperwork or bank account while picking a crypto-backed loan. It also helps in targeting the individuals at the lower level of the pyramid, which is unbanked and cannot provide the required KYC documents.

No Boundaries, Loans Diversified

P2P lending mostly works in restricted geographies’, however, crypto lending could open gateways to cross-border lending, offering diversification to both lenders and borrowers. Crypto-backed loans offer an opportunity to the lending community to diversify their portfolio across different continents and countries. While lenders can take advantage of cross-country diversification, borrowers get a global pool of lenders. A win-win for both.

 

References

Hackernoon

 

Different Types of Crypto-backed Loans

Our last post spoke about the differences between the peer to peer lending and Crypto lending if you didn’t get a chance to check here is the link. Taking a step further today we would talk about different types of crypto-backed loans available in the market.

The crypto assets market is still in evolving phase, and earlier where the crypto world only witnessed holders and miners as the market participants, another group emerging in cryptosphere of – issuers, investors, lenders, borrowers demanding exotic flavors in lending services. The flavors available now are in a basic form that allows holders of crypto assets to generate income from interest earned.

Types of Crypto-backed loans

Crypto-to-Crypto Lending

The arrangement works for people who have spare crypto and are not using at any time. Just lend your Bitcoin or Ether, or Altcoins agree to the smart contract and earn an interest rate for a given period of time. It helps users or businesses to earn extra cryptos just by lending it.

Firm offering Crypto to Crypto Lending – Coincheck, Lending Block, Nuo Bank

Crypto-to-Cash Lending

The model works with businesses/users who are holders of cryptocurrency and in need of Cash. So the cryptocurrency like Bitcoin, Ether or Altcoin work as collateral and the user gets the cash in hand. The cash amount is usually credited to the bank account linked, the borrower needs to make monthly payments and once the amount is fully paid the collateral is reimbursed.

Certain kind of conditions are applicable in case of Crypto to cash lending like in case if the collateral price is dropped by a specific percentage say 25-30, the lending service platform can request for more capital.

Firm offering Crypto to Cash Lending – Unchained Capital, SALT Lending

Margin Funding

It is a unique service offered currently by Bitfinex, which allows individuals/users to fund in multiple currencies to Bitfinex traders. The interest rate, duration could all be decided by the individual who is funding it.

In such case, a user could earn a passive income by lending USD/cryptocurrency depending upon the trade volume and price at a given time.

Firm offering Margin Lending – Bitfinex, Nuo Bank [Launching Soon]

 

References

Bitcoin, Asd,

Crypto-backed Loans, how are they different from peer to peer loans

Crypto-backed loans, bitcoin loans or crypto lending are the terms that offer loans against the crypto you hold. So if you are a holder of Bitcoin/Ether/Altcoins and they are simply lying in your wallet, you could take a loan by putting your tokens as collateral.

What are Crypto-Backed Loans?

In a centralized system where banks or financial institutions or even local pawn shop provide you with a loan against collateral like land, gold, house, etc., with an agreed interest rate to be paid by the bearer. Here banks are the trusted parties that verify the collateral and identity of a person availing loan so that it does not lead to a loss to the bank/FI’s/individuals.

In a decentralized world, the same case is replicated where the borrower would be eligible for a loan amount against the collateral. However, here the issuer and borrower are directly dealing with each other, and there is no third party like ‘Bank.’  This is known as crypto-backed loans.

How does crypto lending work?

So say you have ‘x’ amount of bitcoin in your wallet, via smart contract you initiate the request on one of the crypto-lending platform. There would be other fields like Collateral Token, Loan Amount, Loan Tenure, Premium, etc. Sample this –

Loans 1

Once you have filled in the form, the submitted the request it would be available on the lending platform to get funded. The amount would be credited to your wallet which you could use as per your wish.

loans2

 

How are crypto-backed loans different from Peer-to-peer loans?

loan3

Refrences

Coincrunch, Finder, GetNuo

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