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 www.mycred.io and click “Get Early Access.”

Read more at BusinessWire

Empowering Farmers with Crypto-based loans

Block Commodities, an Agri-tech firm from Africa has launched a pilot project Farmer 3.0  based on crypto loans to empower farmers by providing a transparent and trustworthy ecosystem.

The project started in Uganda with around 1000 farmers, were provided with crypto loans to purchase seeds, agricultural tools, and fertilizers. Innovative technology with intelligent data is helping farmers manage resources and conditions[such as soil fertility, weather conditions] better for production.

Read more at blockcommodities.

 

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

Nexo adds support for Bitcoin Cash

Nexo, the crypto lending firm from Switzerland has announced adding support for bitcoin cash [BCH] as a plan to expand their service offerings. Quite recently the firm added Ripple’s XRP and now support Litecoin and bitcoin cash. The coins BTC, ETH, BNB, and NEXO, would grant cryptocurrency holders the ability to borrow anywhere from $1,000 – $2 million. In case the user requires access to capital, rather than selling their Bitcoin Cash, individuals can lock Bitcoin Cash in the NExo Platform, before retrieving their coins once their loans have been repaid.

All the BCH holders will be able to stake their cryptocurrency as collateral and obtain instant funding in more than 40 fiat currencies.

 

Read more at bitcoinschannel

BlockFi Support Litecoin, GUSD For Crypto-backed Loans

BlockFi co-Founder Zac Prince said in a statement – We have added GUSD and LTC to be used as collateral for crypto-backed loans. This is the company’s first expansion of accepted collateral into top-10 cryptocurrencies. As per the press release – The newly added GUSD option will empower BlockFi to offer loans at any time, and not only during US bank hours. As BlockFi vice president of operations and co-founder, Flori Marquez said – Many parts of the world yet do not have easy access to low-cost credit. With BlockFi support to GUSD, we are looking forward to providing stability to citizens of regions with less stable currencies.

Read more at benzinga.

 

Three reasons why you should avail a Crypto-backed Loan

Loans are the hard reality of our lives. Car loan, home loan, personal loan and the list could go on and on. While all the loans offered by traditional banks are linked to some specific project, crypto-backed loans differ from that. With crypto lending, one could put in his/her digital currency as collateral and ask for a loan in alternative cryptocurrency or fiat for the project they wish for. So once you have secured your cryptos in the digital wallet with a crypto lending platform, and the loan is released you are free to use it as per your wish for buying a car, or home improvement or even putting stuff in business.

Bitcoin loans or blockchain based loans are ideal for individuals who need instant cash in exchange for their valuable cryptocurrency. Listing down few of the other reasons entities could consider to try out crypto loans.

Reasons To Avail Crypto Loans

Effective Crypto Asset Management

Would you like to just let all your hard earned cryptos go away when you are in need of cash? Well, experts recommend that would be not an effective crypto asset management strategy, but you still need extra money. Crypto-backed loans are the answer, a win-win situation where you can get extra money with a promise that you can have all your cryptos back to your wallet.

Instant release of loan amount

Most of the crypto lending platforms release the loan amount [in fiat] directly to borrowers bank account within 4~24 hrs. The whole loan request to loan release process is automated and digitized, making it quick, simple and effective for borrowers who are in dire need of liquidity.

No implications on your credit score

Do you know in India people having less CIBIL score less than 750 gets rejected by banks on their loan request? This is not valid for crypto-backed loans, and also availing a crypto loan does not affect your credit score. So you are free to take a crypto loan and leave the worries about credit score in the dump.

No Paperwork, no documentation, no processing fees, and no credit scores are needed for a crypto-backed loan. Just a handful of cryptos is all you need.


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.

Could Crypto Loans reduce credit risk and margin call risks?

Crypto Loans or Blockchain-backed loans is the trending concept these days that assist crypto enthusiast in earning profits. While lenders enjoy the benefit of earning interest on their digital currency, borrowers use the funds to short sell or shorting. The interest rate earned by lenders vary from 5 – 50% each year.

As per a study by the Unchained Capital, the potential lending market for crypto assets is estimated at around $20-30 billion. Even though cryptocurrencies are highly volatile, they also offer high liquidity. Bearing in mind the possible risks of volatility, liquidity similar to fiat money makes cryptocurrency an ideal asset for loans in fiat.

But how could they be used to reduce credit risk? Let’s explore –

Crypto loans reducing Credit Risks?

Crypto-backed loans offer a unique opportunity to the borrowers to receive funds for any investment they want. Unlike traditional banking where interest rate varies with home loans, car loan or personal loan, crypto loans work with a simple equation of obtaining a loan in fiat of up to 50% of the market value of its crypto asset. Since the deposit is always more prominent than the loan amount, the creditor never can face the defaulter’s risk.

However, in cases when volatility has exceeded the threshold, the lender has the right to make a margin call, i.e., to sell off the crypto asset at market price to pay off the loan amount.

However, if the deposit amount has been affected due to a drop in cryptocurrency the borrower is sent a warning message narrating the deposit amount to be insufficient. In such cases, the crypto exchanges or crypto lending platform ask borrowers to deposit sufficient funds, pay off a part of debt [partially or fully] or sell part of the crypto asset to repay the remaining debt.

Crypto Loans reducing Margin Call Risks

The borrower can also reduce the risks of a margin call by smartly choosing the ratio of deposit and loan size. With a smaller loan amount value, less impact to the price fluctuations with lower interest rates and longer loan terms as it reduces loan risks to the lender, thereby saving borrower from the margin call risk.

While for banks defaulters risk is huge, in the crypto world it could be controlled and managed effectively. Crypto loans also offer the advantage of lower processing fees and fast processing. For more details on Advantages of crypto loans, check our post – Advantages of crypto-backed loans.

Crypto lending is one of the easier ways of earning a passive income if chosen wisely. It is also considered a common alternative to investors who are inclined towards crypto trading but could not find enough time to practice it daily.


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.

Bitcoin Loans – Indian Industry in dilemma

While Indians are still searching for the best interest rates, a new offering from the crypto world has knocked India – Loans against crypto assets or crypto loans.

News.Bitcoin.com surveyed players in the industry, and their responses can be categorized as skeptical. Abhi Upadhyay, from the mobile lending space, says – “Traditional financial institutions like banks are never going to come close to accept cryptocurrency as security.”

Manav Jeet, Founder, and CEO of Rubique, a prominent fintech player in the digital space – We are the best-regulated markets, and even in terms of awareness, only a tiny portion of Indian population is using cryptocurrency. It will take a lot of time for us to get to the stage where we can imagine this form being used in secured loans.”

While in terms of Fintech adoption India has exhibited the second highest fintech adoption rate (59% while the global average is 33%) as per the EY Fintech adoption index, but Bitcoin loans as Saurabh Shankar, head of marketing at Paysense says – conceptually the idea is not bad, but the practical side here revolves around regulations and actual ease.

Read more at News.bitcoin.com


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.

Up ↑