Blockchain.com launches global crypto-backed loans

Blockchain.com this week launched a global crypto-backed loan product that lets users borrow cash while keeping exposure to their digital assets. Borrowers can pledge Bitcoin, Ethereum or USDC as collateral. Annual interest rates start at 1.9%.

The loans target large crypto holders and high-net-worth clients and can be used for property purchases, business investments, tax planning and other large expenses. The product is available in more than 70 jurisdictions, though permitted uses and details vary by country.

Blockchain.com described the offering as competitively priced in a market with more than $70 billion in outstanding crypto-backed loans. The company described the product as designed to offer higher borrowing capacity and a premium client experience for sizable holders. The announcement did not include standard loan-to-value ratios, minimum loan sizes, underwriting criteria or collateral liquidation thresholds.

Peter Smith, the company’s CEO and founder, said, “Crypto-backed lending has been one of the most requested products on Blockchain.com’s platform.” He noted the firm already supports institutional and wealth customers with liquidity, infrastructure, risk management and client services.

The firm will extend tools now used for institutions and wealth clients to a wider set of customers and plans to expand into lending transfers for high-net-worth individuals. It also intends to use blockchain infrastructure to make crypto-backed credit a more direct alternative to traditional borrowing.

Blockchain.com operates in more than 70 jurisdictions and says it has processed over $1.2 trillion in transactions. The announcement did not list the specific countries where loan uses are restricted.