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25/05/2019
Technology

Demand for Crypto-Backed Loans is on the Rise

The cryptocurrency market has been on the rise for a couple of weeks, and now it seems that the industry is finally out of the long bear winter phase. Investors’ sentiments have improved and rather than selling the digital coins, people are holding onto cryptocurrencies in anticipation of better gains in the future. Along with the investment, the trend of getting a loan against cryptocurrencies is also catching up with the general public. Interestingly, organizations and banks which provide loan against digital coins have mushroomed over the years. Apparently, the rising demand for service has led to this expansion as more and more people are willing to avail loan against crypto. Moreover, banking institutions are also offering related services to this loan facility which includes providing interest on the deposits made in terms of digital coins. Given the fact that the interest rates are quite low when it comes to the central authorities run banks and financial institutions, this is going to benefit the organizations in a substantial manner as crypto industry and its customer are growing at a fast pace.

Corporate Examples

We have a number of examples in the lending space where companies are making big money as they have been able to attract customers by their innovative services and unique propositions. Salt Lending is one such company which has got unprecedented success with its crypto saving and investment services. It provides loans against the cryptocurrency and accepts various coins such as Ethereum, Dogecoin, Litecoin, etc, as collateral. The amount you can apply for the loan ranges from $5,000-$25,000,000 which is quite substantial in its upper limits. Another cryptocurrency lender platform, Youholder, gives loan up to $30,000 against the cryptocurrency. The company accepts a total of 8 digital coins which includes REP tokens and bitcoin cash among others. Along with providing the loan, the company deals in a number of other allied services which include buying the digital assets, exchange services, etc.

Experts’ Opinion

Market experts agree on the fact that the recent spark in the crypto sector is the principal reason behind this renewed interest in this rapidly growing niche segment of cryptocurrency loans. Once the stability returns and the market becomes less volatile, this trend is going to intensify further and expected to find a wide favor with potential customers. Government institutions and regulatory agencies can also play a crucial role in further brightening the prospects of cryptocurrency loans or for that matter, the whole cryptocurrency segment. Any business segment regulated by a proper legislative framework is sure to woo the investors by reassuring safety and security for their investment. And now, with many countries coming up with the proper regulatory framework for cryptocurrency and digital assets, a stage is set for crypto adoption to take a giant leap and intensify its adoption among the investors. Once the faith and stability in the segment rise, various services related to cryptocurrencies including this newly floated loan facility are expected to have a positive impact on the overall crypto adoption and market prospects.

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