Crypto Trading App, Abra Rolls Out Bitcoin & Ethereum-Backed Loans in 35 US States
Crypto trading app, Abra, introduces a fiat borrowing feature using crypto collateral assets.
Announced on Tuesday, Abra Borrow allows users to borrow fiat loans using their crypto assets as collateral directly. The lending and borrowing platform lets users take out US dollar loans using their Bitcoin (BTC) and Ethereum (ETH) coins as collateral.
The service will first be available to 35 states across the U.S., with more states to follow as the year progresses. The California-based crypto firm stated more countries would support the lending service in the future. The interest rate on a loan is calculated based on the loan-to-value ratio, whereby the more the collateral, the lower the interest rates. Moreover, the shorter the loan term, the lower the interest rate charged.
Announcing Abra Borrow:
— Abra (@AbraGlobal) March 23, 2021
Abra aims to increase financial access to everybody; hence there are no employment checks or credit score checks to receive a loan. According to a spokesperson, the platform allows users to directly use their crypto to “tap to their gains without foregoing future prices or selling their crypto to realize gains.”
The platform allows a maximum borrowable amount of $110,000, with the rates starting at 3.65% APY and the loan term ranging from six to 24 months.
Abra crypto trading app introduced interest-earning accounts on stablecoins allowing you to earn up to 9% APY on your savings.