Bitcoin financial services firm Onramp has teamed up with Arch, a lending platform, to introduce a new bitcoin-backed lending service. This product is designed for Bitcoin holders who want to secure loans without selling their assets.
Access Liquidity While Retaining Bitcoin Ownership
The service allows borrowers to use their Bitcoin (BTC) holdings as collateral, offering them the opportunity to receive cash or stablecoins in exchange. By using Bitcoin as security, borrowers can avoid capital gains taxes and continue to benefit from the potential appreciation of their assets.
This product is geared toward investors seeking liquidity without parting with their Bitcoin. The flexibility of this model is particularly appealing to those who wish to hold onto their long-term investments.
How the Service Works
The lending process involves Arch, the lending partner, handling the underwriting and distribution of the loans. Onramp, known for its focus on Bitcoin financial solutions, will integrate the service into its platform, providing users with an alternative to traditional financing methods.
Growing Popularity of Bitcoin-Backed Lending
The popularity of bitcoin-backed loans is on the rise, especially among long-term Bitcoin holders who want to preserve their positions in the asset. This lending model offers a convenient alternative to traditional loans and has been widely used for personal liquidity needs, as well as by institutions for financing strategies.
This new partnership between Onramp and Arch represents a significant development in the growing market for alternative lending solutions, offering Bitcoin holders an innovative way to access capital while keeping their investments intact.
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