For borrowing, it is now possible at Bitcoin Suisse to provide collateral in the form of Polkadot, Tezos, Dash and Cardano for creditworthiness.
The Swiss financial service provider Bitcoin Suisse has been offering a new type of loan since September 15
As from the press releaseso-called “staking-backed loans” are now available. In German: „Loans secured through stakes“ make it possible to be liquid in other currencies despite tied up crypto capital.
In the future, it should be possible to lock the crypto currencies Polkadot (DOT), Tezos (TXZ), Dash (DASH) and Cardano (ADA) as security in the Bitcoin Fortune vault. In return, the finance house will issue loans in other currencies: Either US dollars (USD), euros (EUR), Swiss francs (CHF), pounds sterling (GBP) or Danish kroner (DKK). Or investors can also decide to receive the loan in Bitcoin (BTC) or Ether (ETH).
Bitcoin Suisse expands product range
Since 2018 it has been possible to use the two largest cryptocurrencies in terms of market capitalization, Bitcoin and Ether, as security for loans. Only now is it possible to use other cryptocurrencies as security. To do this, however, you have to take out a loan of at least 100,000 USD.
The company, founded in 2013, justified the move with the growing popularity of the proof-of-stake process. Unlike Proof of Work, this algorithm does not, for example, give out a reward when creating a new block. This is the case with Bitcoin, and ( still ) also with Ethereum .
It was only in May of this year that Bitcoin Suisse added the crypto currency Tezos to its portfolio . With the exception of Dash, the digital currencies stored as security are all among the 20 largest in terms of market capitalization.