Unchained Capital Blockchain Financial Services Makes Crypto Lending Safer
Unchained Capital recently announced that they will soon provide multi-signature and multi-institution cold storage solutions for seekers who wish to obtain loans and have crypto assets that they want to leverage.
The company claims that as traditional financial institutes start to include cryptos in their services, Unchained Capital’s multi-institution custody solution will take over to become the established standard of larger transactions.
Unchained Capital is a novelty even to the blockchain financial space. They offer cash loans to long-term crypto holders in a way that is safe, swift and publically available for review. Their front end infrastructure is backed by their multi-signature and multi-institution cold storage custody solution. The claim to have the capabilities to loan amounts up to $1 million in just a business day and loans up to $5 million in under a week. Their interest rates start a low as 5.99%.
What differentiates unchained capital is that other crypto loan providers ask the borrower to give up complete control of their assets and it stored as collateral at a centralized place like an exchange. This increases the risks of hacks and thefts. Another party is that if the third party with the collateral is unavailable when the loans are being sanctioned, transactions can get delayed.
Distinctly, Multi-Signature solutions need an array of keys to approve a blockchain based transaction. Most crypto investors generally use only a single private key to approve their transaction on their wallets. Depending on one single key can be problematic. One single loss of key can lock you out of your wallet or theft of the same can get a hacker access easily.
In order to diminish the risks of a counterparty, Unchained Capital entered a partnership with Citadel SPV which is an independent third-party provider of governance, administration and accounting solutions to the global capital markets. They will act as a reference agent through which they gain the power to execute collateral related transactions.
Citadel SPV’s site says: “If you have a loan from Unchained Capital, the Security Agreement you executed in connection with your loan application will disclose whether a Key Agent is being used to secure your loan’s related collateral.”