Strike has launched BTC-backed loans for eligible U.S. customers, enabling them to use Bitcoin as collateral. Customers can borrow between $75,000 to $2 million, with a minimum APR of 12%. The company aims to expand the service to Europe soon, leveraging its strong history in Bitcoin payments and infrastructure.
Strike, a prominent payments service allowing users to engage with Bitcoin, has announced a new offering: BTC-backed loans. On Tuesday, CEO Jack Mallers revealed the service via a video on X social platform. Eligible customers in 26 states across the U.S. can access loans starting at a minimum of $75,000, potentially reaching up to $2 million, depending on certain criteria. The firm’s initiative marks a significant step for individuals looking to leverage their Bitcoin without the necessity of selling it.
Mallers emphasised the benefit of these loans stating, “You shouldn’t have to sell the best-performing asset in human history to access cash. Now you don’t have to.” The loans come with an interest rate starting at 12% APR, designed for both individuals and corporations with larger loan requests also welcomed after evaluation. It’s a game-changer for those who wish to utilise their Bitcoin wealth in practical terms.
In the future, Strike plans to expand these Bitcoin-backed loans, with the hope of catering to international customers, specifically in Europe. The potential for growth mirrors the obligations of cryptocurrency users who are increasingly looking for ways to effectively manage their digital assets within financial markets.
Strike, a player in the digital payments arena, has been integral to Bitcoin’s global adoption. It facilitated El Salvador’s landmark Bitcoin project, ensuring that infrastructure was in place for the populace to transact in cryptocurrency since the country became the first to accept BTC as legal tender in 2021. While this law has faced challenges, including pressure from the International Monetary Fund, El Salvador’s president Nayib Bukele continues to actively invest in Bitcoin despite the setbacks.
By providing this loan service, Strike not only aligns itself further within the ever-evolving financial landscape but also caters to a growing demand among Bitcoin holders seeking liquidity without divesting. As the company gears up for expansion, it sets a precedent for how cryptocurrencies could potentially co-exist with traditional financial systems in the future.
Strike’s move, as announced by Mallers, could reshape expectations for digital currency holders. The rise of Bitcoin-backed loans could just be the start of a new chapter in utilising cryptocurrency as viable collateral for loans, fundamentally changing how we think about asset management in this digital age.
