New Group of Lenders Using Bitcoin as Collateral to Extend Loans

Startups like Salt Lending, Nebeus, CoinLoan and EthLend have all started a new industry by making loans to borrowers using bitcoin as collateral; with the world of bitcoin millionaires growing they will need to buy houses or cars and being able to secure a loan by putting up their bitcoin will allow then to make these purchases; securing a loan for $100,000 could cost a borrower 12 to 20 percent in interest and $200,000 in bitcoin as collateral; the loans could help bitcoin miners secure funding and potentially compete with P2P lenders; it is still early days but the potential is there as more byproducts are coming to light in the bitcoin craze. Source.

  • Todd Anderson

    Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.