Strike disrupts crypto lending with loans up to $2M backed by BTC
The post Strike disrupts crypto lending with loans up to $2M backed by BTC appeared on BitcoinEthereumNews.com. Strike, the Bitcoin Lightning payments app founded by Jack Mallers, has launched a new crypto lending service. The program, revealed Tuesday, allows individual and corporate users to borrow cash using Bitcoin as collateral without selling the asset. Mallers wrote on X that people shouldn’t have to sell the best-performing asset to access cash. The entrepreneur, who recently took the helm at Twenty-One Capital, a rival to Tether-backed Strategy, emphasized that the offering allows users to unlock the value of their Bitcoin holdings without liquidating them. Strike targets wealthy clients with high-value, credit-free Bitcoin loans The new Strike Lending product will first launch in specific U.S. markets and be followed by an international expansion. The offering is tailored for high-net-worth individuals and institutional clients. It provides 12-month loans from $75,000 to $2 million at a minimum 12% APR interest rate with the option to pay monthly or to pay back the full interest and loan balance at the end of the 12-month term. It is also worth mentioning that Strike will offer no origination or early repayment fees. These Bitcoin-backed loans will not go on credit reports and have no bearing on credit scores. To provide competitive terms, Strike works with third-party capital providers that have been vetted and who retain the collateral during the loan term. However, Strike remains legally responsible for the collateral the whole time. Strike’s launch comes amid a broader resurgence in crypto credit markets, which are recovering from the dramatic 2022 downturn that saw major players like BlockFi, Celsius, and Genesis collapse. While the sector remains below its 2021 peak—down 43% from the $64.4 billion high, according to Galaxy Research—lenders such as Coinbase and Xapo have recently expanded their offerings. As of Q4 2024, centralized finance (CeFi) leaders Tether, Galaxy, and Ledn collectively hold loan books worth $9.9 billion,…
The post Strike disrupts crypto lending with loans up to $2M backed by BTC appeared on BitcoinEthereumNews.com.
Strike, the Bitcoin Lightning payments app founded by Jack Mallers, has launched a new crypto lending service. The program, revealed Tuesday, allows individual and corporate users to borrow cash using Bitcoin as collateral without selling the asset. Mallers wrote on X that people shouldn’t have to sell the best-performing asset to access cash. The entrepreneur, who recently took the helm at Twenty-One Capital, a rival to Tether-backed Strategy, emphasized that the offering allows users to unlock the value of their Bitcoin holdings without liquidating them. Strike targets wealthy clients with high-value, credit-free Bitcoin loans The new Strike Lending product will first launch in specific U.S. markets and be followed by an international expansion. The offering is tailored for high-net-worth individuals and institutional clients. It provides 12-month loans from $75,000 to $2 million at a minimum 12% APR interest rate with the option to pay monthly or to pay back the full interest and loan balance at the end of the 12-month term. It is also worth mentioning that Strike will offer no origination or early repayment fees. These Bitcoin-backed loans will not go on credit reports and have no bearing on credit scores. To provide competitive terms, Strike works with third-party capital providers that have been vetted and who retain the collateral during the loan term. However, Strike remains legally responsible for the collateral the whole time. Strike’s launch comes amid a broader resurgence in crypto credit markets, which are recovering from the dramatic 2022 downturn that saw major players like BlockFi, Celsius, and Genesis collapse. While the sector remains below its 2021 peak—down 43% from the $64.4 billion high, according to Galaxy Research—lenders such as Coinbase and Xapo have recently expanded their offerings. As of Q4 2024, centralized finance (CeFi) leaders Tether, Galaxy, and Ledn collectively hold loan books worth $9.9 billion,…
What's Your Reaction?
