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Atomic Capital to Aggressively Pursue Crypto-backed Loans
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Atomic Capital, a financial firm which raised over $3M in their STO last year, is now moving into crypto-lending.
Atomic Capital, the “asset tokenization startup” is officially moving into crypto lending at an aggressive pace. The company is now offering U.S. dollar loans for up to 85% of the current value of BTC or ETH. BTC and ETH would be used as collateral for the loan.
The percent of value offered in these crypto-backed loans are far more than their competitors. Most other crypto loans firms offer some 50% of the value of crypto assets, however Atomic Capital is attempting to set a new, higher standard in the sector. 85% of the crypto-collateral’s value puts them well above their competitors.
Atomic Capital is known for being heavily involved in the security token space. It issued its first digital security on Ethereum in November of 2018. Now, the firm is looking to expand to beyond just security tokens but also crypto-lending. The market has become quite crowded in the past year with crypto-lending becoming extremely popular during this bear market.
The firm’s main competitor in the crypto-lending space is BlockFi who offers loans from $100,000 to $100M. However, the CEO of Atomic Capital, Alexander Blum, has said that over $80M worth of loans have already been requested before the official platform for crypto-lending has even been released yet.
It is still unclear whether or not Atomic Capital will incorporate their strong security token focus into their crypto-lending services.The waitlist for the crypto-lending service is now open.
Are you interested in crypto-lending services? Do you trust them or they just a short-term fad? Let us know your thoughts below.
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Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
