- More investors are taking out loans using their cryptocurrency portfolios as collateral to make large purchases.
- The crypto boom has led to the rise of non-bank cryptocurrency lenders such as Celsius Network, BlockFi and Nexo Capital that charge 0.0-10% interest depending on loan-to-value ratios.
- Borrowers receive loans in US dollars, other traditional currencies or stablecoins pegged to traditional currencies.
- Since last year, one lending group’s crypto-backed loans outstanding have increased from $1.4B to $25B.
- These crypto-backed loans let investors cash out without paying taxes.
Bitcoin to Bucks: Crypto Fans Borrow to Buy Homes, Cars—and More Crypto
(09/10/2021)
