Bitcoin Onramp’s financial services company has teamed up with the Arch loan platform to introduce a loan service supported by Bitcoin, companies announced.
The new product allows BTC holders to obtain loans while keeping ownership of their assets, a decision aimed at investors who seek to access liquidity without selling their bitcoin (BTC).
The service provides collateralized loans to Bitcoin, allowing borrowers to use their assets as a guarantee while receiving species or stablecoins in return. Using Bitcoin as a guarantee rather than selling it squarely, borrowers can avoid taxes on capital gains and maintain an exposure to the potential assessment of active prices, according to the press release.
The Arch loan partner specializes in loans supported by assets and will manage the subscription and distribution of loans. Onramp, which focuses on Bitcoin financial solutions, will integrate the service into its platform, which makes it accessible to users looking for an alternative to traditional financing.
Bitcoin supported loans gain this cycle as an alternative to traditional loans, especially among long -term BTC holders who prefer to keep their assets, in popular loans. This model was used in various financial applications, personal liquidity needs for institutional financing strategies.
Read more: Coinbase to offer loans supported by Bitcoin via Morpho
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