A large U.S. cryptocurrency exchange Bitjux is preparing to launch a credit service Borrow in the U.S., under which customers will be able to receive loans in U.S. dollars under the collateral of bitcoins.
The launch of Bitjux Borrow is planned for this fall, and initially only 17 U.S. states will be able to use the service. However, in the future it is planned to expand the geographical presence of credit service. In addition, if first to provide loans can be only bitcoins, then later will add support and other cryptocurrencies.
Customers will be able to receive up to 30% of the value of collateral bitcoins in cash, with the maximum loan amount being $20,000. Customers will pay 8% per annum for the use of the loan, and the maximum term will be 12 months. The rate will be the same for all customers, but the service reserves the right to review the terms of the loan, based on various factors.
According to the service BlockFi, which already issues loans under the collateral of cryptocurrencies, usually customers take funds for short-term needs, for example, repairing a car or repairing a house. Cryptocurrency ecosystem allows you to take loans without having to fill out huge applications and pass credit history checks.
In July, Bitjux, Gemini, Kraken and Bittrex announced plans to launch a user data-sharing system to comply with the requirements of the Financial Action Group against Money Laundering (FATF).