Onramp and Arch Launch Bitcoin-Backed Lending Service

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Bitcoin-Backed Lending Service Launched by Onramp and Arch

Onramp, a financial services firm specializing in bitcoin, has partnered with lending platform Arch to introduce a bitcoin-backed lending service. This new product allows investors to secure loans while retaining ownership of their assets, providing a convenient option for those looking to access liquidity without selling their bitcoin.

How the Service Works

The service provides bitcoin-collateralized loans, allowing borrowers to use their holdings as security and receive cash or stablecoins in return. By using bitcoin as collateral, borrowers can avoid capital gains taxes and maintain exposure to the asset’s potential price appreciation.

Benefits of Bitcoin-Backed Lending

Bitcoin-backed lending is gaining popularity as an alternative to traditional loans, particularly among long-term BTC holders who prefer to retain their assets. This model has been used in various financial applications, from personal liquidity needs to institutional financing strategies.

Partnership between Onramp and Arch

The partnership between Onramp and Arch aims to integrate the new service into Onramp’s platform, making it accessible to users seeking alternative financing options. Lending partner Arch will handle the underwriting and loan distribution, while Onramp will focus on bitcoin financial solutions.

Conclusion

In conclusion, the new bitcoin-backed lending service from Onramp and Arch offers a convenient and innovative solution for investors to access liquidity while retaining control over their assets. With its potential to avoid capital gains taxes and maintain exposure to the asset’s potential price appreciation, this service is likely to attract a wide range of investors.

FAQs

Q: What is the purpose of the bitcoin-backed lending service?
A: The service allows investors to secure loans while retaining ownership of their assets, providing a convenient option for those looking to access liquidity without selling their bitcoin.

Q: How does the service work?
A: The service provides bitcoin-collateralized loans, allowing borrowers to use their holdings as security and receive cash or stablecoins in return.

Q: What are the benefits of bitcoin-backed lending?
A: Bitcoin-backed lending is gaining popularity as an alternative to traditional loans, particularly among long-term BTC holders who prefer to retain their assets. This model has been used in various financial applications, from personal liquidity needs to institutional financing strategies.

Q: Who are the partners behind the new service?
A: The partnership between Onramp and Arch aims to integrate the new service into Onramp’s platform, making it accessible to users seeking alternative financing options. Lending partner Arch will handle the underwriting and loan distribution, while Onramp will focus on bitcoin financial solutions.