Strike, the Bitcoin Lightning Payments application founded by Jack Mallers, launched a new cryptography loan service. The program, revealed Tuesday, allows individual users and companies to borrow money using Bitcoin as a guarantee without selling the assets.
Departments Written on x That people should not have to sell the most efficient asset to access Cash. The entrepreneur, who recently took the bar at 21 capital, a rival of the strategy supported by ties, stressed that the offer allows users to unlock the value of their Bitcoin farms without liquidating them.
Target target of rich customers with Bitcoin loans without value and without credit
The new strike loan product will first be launched on specific American markets and will be followed by international expansion. The offer is adapted to highstur individuals and institutional customers.
It offers loans of 12 months from $ 75,000 to $ 2 million at an interest rate at least 12% APR with the possibility of paying monthly or reimbursing the full balance of interest and loans at the end of the duration of 12 months. It should also be mentioned that the strike will not offer any creation or early reimbursement costs.
These loans supported by Bitcoin will not be made on credit reports and will have no impact on credit ratings. To provide competitive conditions, Strike works with third -party capital suppliers who have been examined and who retain the guarantee during the lending period. However, the strike remains legally responsible for guarantees all the time.
The launch of Strike occurs in the middle of a broader resurgence of the cryptographic credit markets, which recover from the dramatic slowdown of 2022 which saw major actors like Blockfi, Celsius and Genesis collapse. While the sector remains below its peak of 2021, 43% compared to the summit of $ 64.4 billion, according to Galaxy search—Lenders such as Coinbase and Xapo have recently expanded their offers.
Since the fourth quarter of 2024, the leaders of centralized finance (CEFI) Tether, Galaxy and LEDN collectively hold loan books worth 9.9 billion dollars, including nearly 89% of the CFI market and 27% of wider cryptographic loan ecosystems, which includes crypto-collateralized CDP stable.
Bitcoin loans redefine financial products as the strike extends in cryptographic loans
Bitcoin loans represent an evolution towards the expansion of the way the largest digital active in the world can be used as a financial product. By offering liquidity without exchanging the property of the medal, the borrowers gain liquidity and maintain their exposure to Bitcoin.
Strike is positioning itself as a modern alternative to access liquidity during what seems to be a bullish phase for bitcoin and digital assets. As Malers pointed out, “if #Bitcoin continues to grow faster than your loan costs, your asset appreciates faster than your debt.”
The growing demand for chain loans is also obvious in Ethereum, where the decentralized loans sector now exceeds $ 34 billion.
This launch also coincides with the recent appointment of malers as CEO of Twenty and Ones Capital, a financial company focused on Bitcoin supported by Cantor Fitzgerald. With deposit of steps which now lead both Strike and twenty -one capital, questions about the potential synergies between the Strike loan service and a greater strategy for financing emerging bitcoin.
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