DrawBridge Lending, a Bitcoin lending service, has announced it is launching its own platform to conduct loan servicing for Bitcoin holders.
Borrowers at DrawBridge’s upcoming platform can obtain a loan at 2.5% APR with tenors of up to 6.5 months depending on the specific loan program, as long as the borrower uses their Bitcoins as collateral. That currency will be held with an insured and qualified third-party custodian and a one-time interest and principal payment will be due when the loan matures, according to the lender.
At this time, DrawBridge can lend in 45 states. Qualified borrowers at DrawBridge are institutions, cryptocurrency miners, investors and holders.
“Our platform extends the benefits that most institutional investors are accustomed to in other asset classes in the financial markets,” said DrawBridge CEO Jason Urban, in a statement. “Our goal at DrawBridge is to be the bridge between traditional pools of liquid capital and the evolving digital asset space.”
DrawBridge, whose platform launches in February 13, says it has already received strong preliminary demand from many institutional users. It is now accepting loan applications for the upcoming launch.
Chicago based DrawBridge plans to offer more services in 2019.