From :: https://blockfi.com/loans/who-and-why-use-blockfi-loans

by BlockFi News, Loans 

Crypto Backed Loans: Who’s Using Them and Why?



 
Crypto-backed loans are one of the most popular tools in the crypto ecosystem. Not only are they available at rates that beat many traditional funding options, they provide crypto investors with a way to access the value of their crypto without having to sell. Structured just like any other collateralized loan, borrowers stake their crypto as collateral (security). The lender then funds the borrower a certain percentage of the value of the collateral. This is referred to as a loan-to-value (LTV) rate. At BlockFi, our loans offer LTVs up to 50% (or half the value of your collateral), starting at interest rates as low as 4.5%. Once the loan is paid off, the borrower gets their collateral back. It’s more or less that simple.
We believe that offering more transparency into our products makes it easier for people to understand what they’re buying and how they work. This benefits not only the end client but the crypto ecosystem as a whole. Here are some interesting data points we wanted to share to help shine light on who is actually taking these loans and what are they being used for.

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