DrawBridge Lending Announces the Launch of a New Loan Platform for Bitcoin Users
In a recent blog post, DrawBridge Lending announced the launching of a new platform specifically designed for Bitcoin holders. Investors that are searching to monetize their Bitcoin holdings can use DrawBridge Lending services and have a USD short-term non-recourse loan at 2.5% APR.
At the moment, the company is able to lend money in 45 states in the country. In the beginning, they will be launching loans to qualified borrowers such as institutions, crypto miners and investors.
Investors will be able to have a USD loan with a 2.5% APR with tenors with a loan program time that could last between 1 and 2 months, or 5.5 and 6.5 months. The collateral will be held in secure third-party custodians and there will be a onetime interest and principal payment that will be due at maturity.
Jason Urban, the CEO of DrawBridge Lending, commented about it:
“Our platform extends the benefits that most institutional investors are accustomed to in other asset classes in the financial markets. Our goal at DrawBridge is to be the bridge between traditional pools of liquid capital and the evolving digital asset space.”
The company is also offering products that allow investors to manage market volatility and also price swings, which are very common in the cryptocurrency market. By offering non-recourse loans with no margin calls, the service allows borrowers to monetize holdings without having to be worried about liquidation or capital calls, said Tom Anderson, the President of DrawBridge Lending.
According to the official press release, the firm has already received strong demand from institutional users. Applications are already open for the launch on February 13.
Before the issuance of any loan, borrowers will have to undergo a due diligence process. As soon as a loan is processed, borrowers will be receiving the loan principal in US dollars in just one business day.