Bondster will guarantee P2P loans with Bitcoin
Bondster a Czech Republic-based peer-to-peer lending platform said it would secure investor loans with Bitcoin.
Bondster says last week the first batch of bitcoin-backed loans were initiated on its platform. Bondster claims there was “unprecedented interest” in these loans.
Bondster creates secured loans with real estate, personal property, a redemption guarantee and now crypto. The only difference with a secured Bitcoin loan is in the method of securing, where instead of movable or immovable property, borrowers pledge their Bitcoin. The company adds that if there is a dramatic drop in value, borrowers have to make up the difference or they lose their promised Bitcoin.
Bitcoin-backed loans are also subject to the so-called redemption guarantee, which applies in the event that the borrower stops repaying the loan. In such a case, the originator pays the investors the full amount invested, including the interest received.
“The number one priority for us was maximum safety. The LTV (Loan-to-Value) ratio for this type of secured loan is therefore 50-70%. At the same time, the loans come with the redemption guarantee that applies both in the event of default and early termination, so that investors do not lose money or interest. These will always be paid to them in full, ”explains the CEO of Bondster. Pavel Kléma.
Klema added that a few days ago they hit the 13,000 investor milestone on the platform and investor interest in the amount of money invested in April has returned to pre-market levels. pandemic.
“Against this backdrop, I firmly believe that bitcoin-backed loans will further accelerate the growth of the Bondster investment platform.”