The Melbourne company, Helio, which operates based on an Australian credit license (ACL), has begun offering cryptocurrency loans. In the current bear market, cryptocurrency owners can borrow fiat money for their digital coins, thus preserving their assets and receiving the necessary funds.
Currently, the platform supports four main cryptocurrencies: Bitcoin (BTC), Ether (ETH), Lightcoin (LTC) and Ripple (XRP). The company offers loans for up to 48 months at a rate from 17% to 24%, depending on the value of the collateral.
Customers can choose between 30, 40, and 50 percent margin (LTV). For example, a loan of A $ 10,000 with a 30% LTV would require a borrower to pledge a loan of 7.19 BTC as security. In this case, the rate will be 17%, and the monthly payment - 350 Australian dollars (about $ 250).
The Helio website has a calculator that helps you calculate various loan configurations. The minimum amount that can be borrowed is 1,000 Australian dollars. The application process begins with the provision of a valid email address. To complete registration, candidates must follow the link sent by the platform.
According to Helio founder John O’Shea, his company is the first licensed organization in Australia to offer loans secured by cryptocurrency. He believes that there is a huge digital asset market in the country. According to some estimates, Australians make daily cryptocurrency transactions worth about $ 2.8 million.
O'Shea said that currently there are not enough service providers and companies willing or able to support a growing market and provide loans secured by cryptocurrency. That is why he sees the opportunity to "benefit from something so demanded, but at the same time underserved."
“We provide financing through cryptocurrency loans to both individuals and businesses. This means that customers owning Bitcoin, Etherium, Lightcoin or Ripple can use their assets as collateral for loan financing”, O’Shea said.
Unlike traditional lenders, Helio can rely on digital assets transferred by its clients to a secure wallet. In case of refusal to pay the debt, the company can sell coins to cover the losses. At the same time, Helio customers can benefit from the protection provided by the laws and regulations of the ACL and the Australian Securities and Investments Commission (ASIC).
According to Australian media reports, Helio obtained a credit license through the acquisition of another company, Cashflow Investment. In the future, the ACL license will allow the company to offer its customers even more favorable terms.
Recall that in November, the Spanish banking giant BBVA completed a pilot project to place a syndicated loan in the amount of $ 150 million on the blockchain, and in August ABC tested the blockchain for issuing loans secured by land.