Fidelity Digital Assets has partnered with startup BlockFi to provide customers with the ability to use BTC as collateral for loans in fiat currency.
According to the publication
Bloomberg, a cryptocurrency-focused division of financial services giant Fidelity, will allow investors to use BTC to provide collateral for loans in fiat currency. Bloomberg quotes Fidelity Digital Assets president Tom Jessop as saying that using bitcoin to secure loans will become “a pretty important part of the ecosystem.”
Fidelity’s institutional clients will need a BlockFi account to receive the loan. Bitcoin’s volatility will be managed by BlockFi using cash in the amount of 60% of the loan secured by the digital asset. According to the publication, Fidelity expects that hedge funds, cryptocurrency miners and OTC trading platforms will use the new service.
Recall that in August, Expobank issued for the first time in Russia
a bank loan secured by a crypto asset-it was received by entrepreneur Mikhail Uspensky. In the same month, the American cryptocurrency exchange Coinbase reported that it is preparing to launch a loan service Borrow in the United States, in which customers will be able to receive loans in US dollars secured by bitcoins.