What’s interesting to see is that Bitcoin backed loans should be at lower rates than traditional fiat loans as the lender generally custodies the borrowers BTC for the loan duration, which gives 100% guarantee of loan repayment.

That doesn’t seem to be the case currently with Xapo and Strike charging 10 - 12% APR compared to banks who charge 5 - 7% on fiat backed loans.

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Yeah, it's still a new market and lenders don't get idea, because they never lended against an asset with global liquidity 24/7/365.

Strike & Xapo should know better, they are Bitcoin companies.

I think it more likely they are exploiting a new market before competition arrives.

I don't think they're to blame, because they're not the liquidity providers for the loans.

True 🥹

🤝

Today I learned FalconX are Xapo’s liquidity provider 😳

https://www.falconx.io/