Blockbid to provide Crypto-based Asset Loans (Capital loans backed by crypto-assets)
We’re excited to announce that by partnering with an accredited Australian credit provider, who has been around for 10+ years and operate under an Australian Credit License, we are able to provide capital loans backed by crypto-assets for users of the Blockbid exchange.
Instead of taking out a loan against traditional assets (e.g. house, car…etc), crypto-based asset loans allow you to protect your assets by taking out a loan against your coins instead and receive fiat currencies (e.g. AUD) directly to your bank account.
Blockbid’s crypto-based asset loans will first be offered within Australia but will expand to our global users in the near future.
There is no minimum or maximum loan amount — if your account is fully verified and you currently reside in Australia, this option will be available to you and will be sent to your Australian bank account directly.
How it works
You apply to Blockbid for the loan amount and agree to the credit terms. Your coins are then locked away in a smart contract, which dictates the terms of the loan. Once the loan is repaid, the coins will be released via the smart contract to your account. You can repay the loan amount at any time and keep your coins, as well as any profits earned through coin maturity.
If the loan is not repaid by the time it expires, Blockbid will try to contact you through nominated phone numbers, email addresses…etc. If you’re uncontactable for a set period of time, the coins will be released by the smart contract to the credit provider up to the value of the coins at market value to repay the outstanding loan balance.
Interest is automatically deducted from the coin value or can be paid monthly to the bank account that Blockbid provides to you.
For example, if you have 5 BTC with a market value of $50,000 and apply for a loan of $35,000, you will first need to agree to the interest payment terms and conditions of the loan. Your coins will be held via the smart contract and the loan amount will be provided to you. Once the loan is repaid, your coins will be released to you via the smart contract, plus any profits.
If the value of your coins increases during the time of the loan, you can repay the balance of the loan at any time, your coins will be released to you via the smart contract, as well as any profits earned.
If the value of your coins decreases during the time of the loan or the market moves into a negative position, the smart contract will automatically sell your coins before their value drops below the outstanding balance amount — any amount remaining after the loan is repaid will be credited to your bank account.
Early Access & Beta
To sign up for Early Access on the Blockbid Exchange, visit: https://blockbid.com.au/beta