CRYPTOCURRENCY-BACKED LENDING

We provide loans to Professional Investors secured against mainstream digital assets, primarily Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

OVERVIEW

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The lenders’ crypto lending division sits alongside their equity lending business.

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The lenders have provided 1,200+ equity-backed loans since set up in 2002, with aggregate loan proceeds of over USD 4.5 billion.

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Loan proceeds can be used for any purpose. Typical uses include buying further crypto assets, diversification and property purchases.

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Loan size can be from USD 250,000 up to USD 100 million+

LTVs: 60 – 65%
Fixed interest rates of 3-4% (not linked to a floating rate). Interest payable quarterly in arrears with principal repaid at maturity.

Fixed term loan – minimum term is 18 months. No early repayment option for borrower or lender.
Loan is structured as a repo with transfer of the coins to the lenders’ wallet for the period of the loan.
The loans are non-recourse, meaning that the only collateral provided is the cryptocurrency. No personal guarantees or security over other assets are required. If the borrower walks away from the loan (for example, if there is a substantial drop in the value of the coin), they keep the loan proceeds, and the lenders keep the collateral with no further recourse to the borrower.
Margin call is set at 70% of coin value at start of loan. Borrowers have 5 business days to respond to margin calls.
Borrower receives all upside appreciation of the crypto assets at maturity.