Good news for Crypto users, as businesses can now take out loans against their own Bitcoin or Ether cryptocurrency holdings, It all begins with a platform offering loan solution which is being launched this month in the UK.
Mode platform offers businesses to take out a loan against their cryptocurrency assets without having to go for credit checks.
Currently, the service is available for the two most popular cryptocurrencies – Bitcoin and Ether, so the company is planning to offer the service to others coins in the coming months.
Also, there are plans to launch cryptocurrency backed personal loans, which is part of the wider goal by Mode to become the first UK’s fully regulated digital asset bank.
How it will work
Mode offers cryptocurrency backed loans of minimum £1,000, with no maximum limit,which will be paid out within 24 hours of applying by the businesses.
The loans are calculated as 60% of the current Bitcoin value or 50% of the current Ether value and the Mode keeps the cryptocurrency until the loan is repaid.
The company offers a loan terms of up to 90 days, but it can be extended, with an APR of 12%, compounded daily. Another offer of Mode is penalty-free early repayment.
There are other cryptocurrency backed loans already, But Mode believes there is a gap in the market for a service targeting businesses and it hopes to provide a way that will blend traditional finance with modern solutions.
“users of both traditional and digital assets needs a solution that will support the best of both old and new finance. This is where Mode offers the solution.
So Mode believes it’s approach is to create a reliable environment that will make lending, investing and borrowing safer for everyone,” said Alex Ryvkin, CEO of Mode.
“Lot of crypto-backed lending solutions in the market are created with retail customers in mind. But mode decided to design a product that will listen to the needs of companies in the ecosystem, and giving them a equal access to the capital which will help them successfully grow their business and advance the digital economy.”
Mode is developed to combine the benefits of traditional and tokenized finance.
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