Crypto Lending Becomes Popular
Over the past months, cryptocurrency lending has become very popular, with many companies developing their own technology in order to keep up with the pace of the industry. Salt Lending is a project that empowers the users to take crypto-backed loans. It has already issued over one million deals, and as the interest is growing, new companies start to tap the ground of the so-called crypto-to-cash lending.
What is Crypto-to-Cash lending?
The crypto-to-cash lending is a new business model has been formed in the recent years. It allows the users to lend their virtual coins without selling them. Over the past years, it has been growing in popularity, and now some of the industry’s biggest players have entered the game.
Tech giants enter the scene
A startup company called Nexo has raised $50Million USD to offer digital currency loans on their cash lending platform. Users will be able to take instant credits without credit checks. Their website states that they are to become the first firm to offer instant crypto loans.
Another project is Salt Lending. It is a blockchain project built on the Ethereum network. It has been around for a while now, but it has become much more popular in the last couple of months, accounting as much as over $40 million in issued loans. The borrowers can get their crypto back from the moment the loans are paid back.
Unchained Capital is a company that offers crypto-to-cash loans to individuals and businesses. The funds are issued to the user’s bank accounts, and the loan is paid on a monthly basis. The customers must provide Bitcoin Core in exchange. Loans without a credit check can go up to $1 million, with a 50% loan credit appropriation.
Crypto loans on the height
The crypto-to-cash model becomes popular due to its unique benefits. Often, the loans don’t require credit checks. Another advantage is the ability to take loans without needing to pay back the capital gains. Grace to this, individuals and businesses can save on governmental taxes.
Many startups have already entered the industry, which is bound to stimulate its further growth.