A new lending product from XAPO Bank The qualified members are allowed to reach the dollar loans using their bitcoin holdings as a guarantee. This enable Bitcoin owners to take advantage of the value of the Fiat for their assets without the need to sell.
XAPO, a licensed bank that focuses on Bitcoin services, launched Bitcoin supported this week. Qualified members can now get loans of up to $ 1,000,000 guaranteed for bitcoin.
Once approved, loan boxes are deposited immediately in the member's bank account. The corresponding bitcoin is kept in a safe storage capacity by XAPO until the payment. This allows members to keep bitcoin in the long run during borrowing for their current value.
Members can choose flexible payment conditions from 30 days to one year. There are no early payment fees or penalties, giving borrowers to control cost reduction.
According to the Chairman of the Board of Directors of Xapo Bank Seamus Rocca, the product addresses the need for Bitcoin and Crypto lending solutions. Many bitcoin holders previously faced asset loss from highly dangerous lending platforms.
XAPO states that its Bitcoin -backed loans have more maintenance rates on the loan to the value from 20 % to 40 % to protect the assets of the organs. Mechanism controls for payment and monitoring loan health reduces risks compared to other encryption lending products.
The launch comes at a time when bitcoin holders are increasingly looking to reach the value of their holdings without asset sales. The sale of Bitcoin to cover the short -term financing needs can lead to the loss of the future.
However, experts urge caution when taking advantage of bitcoin holdings, as low prices may lead to side qualifiers if loans become hidden. Davibility for the practices of the lender and risk is recommended.
Comments are closed, but trackbacks and pingbacks are open.