Bilateral loans with cryptocurrencies as the main collateral for transactions is already an experienced business model in this segment and has been widely used in DeFi projects. BlueBenx analyzed the experience of successful models and aims to give the necessary accessibility to Blockchain Bank users, acting as mediator, custodian and liquidator of the contracts signed.
Initially, as part of our strategy, we will offer loans in fiat currency to users who have crypto assets that can guarantee compliance with contracts. Such loans have fair rates and attractive conditions that do not exceed 50% of the current market value of the asset at the time of contracting.
For the execution of the loans, crypto assets will be accepted with some criteria and must be listed among the top 10 of CoinMarketCap. Other assets may be used in accordance with BlueBenx’s assessment of interest; however, the acceptable rate of collaterilization will vary according to the history of price variation of the crypto asset in the market. Assets in the initial offering phase that are not listed on the main exchanges or have a low volume of liquidity will not be accepted.
Loans involving crypto assets are not regulated in all countries, so BlueBenx, following its compliance strategy, will not offer this product alternative to markets that do not recognize or prohibit this type of transaction involving cryptocurrencies.
It is possible to find competitors in each of the activity verticals, but none of them combine the services and solutions proposed by BlueBenx.
Currently, there is no single player that offers a comparable range of products/services.