5 leading crypto lending (crypto loans) providers in the United States
By Pavithra R
Cryptocurrency is digital money. During initial days, it was considered as an easy opportunity for anyone to multiply one’s capital. But when the hype started to dwindle, many investors to avoid the consequences started selling their bitcoin while some continued to HODL.
Crypto lending and loan platform emerged during this time. Crypto loan platforms allow users to put his/her crypto down as collateral and borrow fiat at a ratio. Interest rates for cryptocurrencies incentivize users to loan out their crypto assets because users can earn a higher return lending their assets than they can by storing them. While the passive income advantage of crypto lending is quite obvious, crypto loans can also let an investor add liquidity to their bank account without triggering a taxable event.
The interest offered on crypto fluctuates frequently, but in general, DeFi platforms offer a higher APR across the board. The current pandemic has also drawn huge attention in this sector, when banks are recording negative interest crypto lenders are making money work for them. However, the sector is still in the nascent stage.
Below is a list of 5 emerging Crypto lending (crypto loans) providers in the United States:
BlockFi’s platform offers investors unparalleled capabilities in the digital asset ecosystem. The BlockFi Interest Account (BIA) enables users to earn compound interest in the asset-type they deposit. Clients using the BIA can earn compound interest in crypto, significantly increasing their Bitcoin, Ether, Litecoin, PAX Gold, USD Coin (USDC), Gemini Dollar (GUSD) and USDT (outside of U.S.) balances over time.
Recently, the FinTech raised $50 mn in Series C funding. BlockFi being a fast-growing company has seen its revenue grow ten-fold over the past year, putting the company on pace to reach $100 million in revenue over the next 12 months. According to company data, the firm has $1.5 billion in assets on the platform, with a 0% loss rate across its lending portfolio since inception. The company provides various wealth management products crypto investors need, all powered by blockchain technology. The FinTech is backed by investors including Galaxy Digital, Susquehanna, Akuna Capital, Fidelity, Recruit Strategic Partners, Coinbase Ventures, CMT Digital, SoFi, ConsenSys Ventures, and Morgan Creek Digital.
SALT Lending (2016)
SALT was founded by a group of Bitcoin enthusiasts who aimed to prove that people didn’t need to compromise their lifestyle or forego their needs in order to pursue a long term outlook on cryptocurrency. Since then, the company has emerged to build not only crypto-backed lending technology but also scalable institutional-grade crypto custody and blockchain monitoring products.
As cryptocurrency becomes more widely adopted and additional real-world assets become tokenized, the FinTech aims to offer solutions that make it possible for people to securely hold and borrow against their cryptoassets. It offers crypto-backed loans- cash loans by collateralizing Bitcoin, Ether, Litecoin, Dogecoin, DASH, USDC, TrueUSD and PAX with more options continually added and offers flexible loan terms.
Unchained Capital (2017)
Unchained Capital’s mission is to build a bitcoin native ecosystem that ensures everyone can secure and maximize the value of their bitcoin holdings over multiple generations. The firm offers cash loans to long-term cryptocurrency holders in a secure, fast, and transparent manner, backed by our multi-signature cold-storage custody solution.
Cred, founded by PayPal financial technology veterans, is a decentralized global lending platform that facilitates open access to credit anywhere and anytime. The FinTech’s mission is to harness blockchain’s power to allow everyone to benefit from low-cost credit products.
Cred is a licensed lender and leverages a substantial balance sheet and proprietary technology to provide business and retail credit and to allow its customers to earn a yield on more than 30 crypto and fiat currencies through its partner network. The firm is a founding member of the Universal Protocol Alliance, a coalition of the world’s leading blockchain companies solving some of crypto’s hardest challenges. Recently, Cred joined Visa’s FinTech Fast Track Program.
Constant is a fully-secured peer-to-peer lending platform. It offers interest of up to 11% APR and all lending is backed by borrower collateral, smart contracts, or buy-back guarantee. Borrowers can choose to be paid out in stablecoins or fiat currency, and over 60 different cryptocurrencies are accepted as collateral.
Constant connects investors with borrowers to do business together. It pools investor funds into a lending pool or reserve and matches instantly, whether you’re a borrower or an investor. Borrowers can choose to be paid out in stablecoins or fiat currency, and over 40+ different cryptocurrencies are accepted as collateral. Crypto collateral and buy-back guarantees protect investors’ funds while custodial partner safely manages the movement of funds and collateral.
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