Bylls, a Bitcoin payment processor company has become the first company in Canada to receive a Bitcoin backed loan—which uses Bitcoin as collateral.
Ledn’s First Customer
Ledn is the company that has facilitated the loan according to a report by Wealth Professional a local media outlet.
Commenting on the historic deal, Mauricio Di Bartolomeo, the Chief Strategy Officer at Ledn said:
“Before our Bitcoin-backed loans, both hodlers and Bitcoin business operators were at the mercy of the markets when they needed liquidity.”
He adds that accessing Bitcoin-backed loans through the platform has some tax advantages.
Bylls’ CEO, Francis Pouliot was also excited by the deal. He said that ‘this is a game changer’ because it will help them hold their profits in Bitcoin which has been their policy.
Ledn’s co-founder and CEO, Adam Reeds was also excited by the path his firm has taken to provide value to the Bitcoin fraternity in Canada.
The Bitcoin used as collateral in a loan will be securely held in a ‘Canadian-tailored proprietary custodial vaulting solution for cold storage’ for the life of the loan.
However, even though Ledn has made history in Canada, it’s not the only company that is engaging in such a practice on a larger global scale.
InLock is another company that sees enormous potential with the new type of lending. The company is in the process of offering its own ICO. Its CEO believes the new form of credit offers tremendous opportunities that are yet to be realised by financial institutions.
According to Inlock’s CEO, Csaba Csabai:
“The concept of having a collateral class with money-like liquidity is relatively new. The growth will be enormous once major financial institutions realise the opportunity this new form of lending has to offer.”
Also, recently, Genesis Capital, a United States-based OTC crypto trading firm, indicated that it had issued over $500 million in loans backed by cryptocurrencies.
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.