Lend Your Bitcoin: Earn Interest by Lending Out Your Bitcoin

0 comments at July 24, 2019

From :: https://blockfi.com/lend-bitcoin/

Lend Your Bitcoin: Earn Interest by Lending Out Your Bitcoin


So, you’ve finally purchased bitcoin and are excited at the prospect of holding your new asset for the coming years. Once upon a time there would be nothing for you to do with your bitcoin but store it safely in a wallet and wait to sell at the most opportune moment. But now, instead of tucking your bitcoin away and forgetting about it, you can earn interest on your cryptocurrency and grow your digital asset holdings.
Much like traditional fiat currency, you can put your cryptocurrency to work and generate interest via bitcoin lending platforms and/or staking platforms, which provide interest payments in return for lending out cryptocurrency to borrowers.

Lending Your Bitcoin with Interest Accounts

The same principals that allow you to earn interest from financial accounts, like savings accounts, apply to bitcoin as well. When you deposit US dollars into an interest-bearing account, a financial institution will then lend out your deposit to another party at a higher rate of interest. In return for lending your money, you are rewarded with interest payments. This same method of lending also applies to bitcoin.
A variety of bitcoin traders, institutions, and entrepreneurs are constantly looking to borrow bitcoin. Such borrowers rely on lenders to deposit bitcoin into a bitcoin lending platform which provides those lenders interest returns. Lenders receive interest payments while borrowers gain access to capital.

Finding a Bitcoin Lending Platform

In order to loan your bitcoin, you will first have to find a suitable bitcoin lending platform which not only provides you a solid rate of interest for lending out your crypto, but a safe and secure method of doing so. BlockFi has proven to be at the forefront of the bitcoin lending industry, and provides its customers not only with great returns, but advanced security measures as well.
The BlockFi Interest Account (BIA) allows lenders to lend their bitcoin in exchange for up to 6.2% interest annually. All crypto holdings in a BIA are custodied at the Gemini Trust Company, which provides some of the best security in the industry. Deposits are regulated by the New York Department of Financial Services and are provided insurance coverage for assets held in custody.
Additionally, BlockFi is one of the only bitcoin lending platforms to provide compounding interest on account balances, paid to clients in cryptocurrency. Compound interest creates better returns for your deposit, allowing you to grow your bitcoin holdings over time. Customers who wish to earn interest from their crypto with other coins can do so on BlockFi as well, as the platform also accepts Ether and Gemini Dollar deposits on interest-bearing accounts.
Bitcoin lending isn’t perfect, and comes with its own risks. The biggest risk in lending your bitcoin is that of borrower default and/or late payment. Such instances can cause the expected rate of return on lending to decrease, or, in the case of default, result in a loss of investor principal. This has not happened to date.

Crypto Staking Platforms

Much has been made about how to adequately, and efficiently secure blockchain networks. The original method of security employed by bitcoin, known as proof-of-work (PoW), relies on computing power to secure blocks on the chain. However, this has been seen as extremely inefficient and energy intensive, leading to other methods of blockchain security being implemented over time.
One alternative method of securing a blockchain is based on network participants locking-in tokens to validate transaction blocks on the blockchain. These participants are awarded cryptocurrency for securing the network, and penalized if they act maliciously. This method of blockchain security is known as proof-of-stake (PoS).
In PoS there is a type of staking, known as non-node staking, which doesn’t require token holders to validate transactions. Token holders are rewarded in interest simply for holding the blockchain’s native cryptocurrency. Non-node staking doesn’t require any technical knowledge or setup, and has no minimum staking requirement, making it the better choice for the uninitiated cryptocurrency holder.
Interest returns for staking are often advertised anywhere from 1% – 1,000% depending on the cryptocurrency. But don’t get excited just yet, as cryptocurrencies offering such high rates of interest should be met with caution. Fraud and negligence have been uncovered in many cryptocurrency projects, while others with good intentions might not make it out of the market alive. Because interest is paid-out in cryptocurrency, the underlying value of the cryptocurrency being staked is of great significance. A 20% return on a cryptocurrency which is steadily losing its value and won’t exist in one year is effectively useless. Also, you can’t just stake any cryptocurrency, as only blockchains which utilize PoS allow for staking. Therefore, there is no staking option for bitcoin and holders of digital assets that utilize PoW or other methods of securing their networks.
Another downside to staking platforms is its lack of customer service. The decentralized nature of most staking platforms means there is no single entity available to assist customers at any given time. This is a big drawback for customers who want to make sure someone is always looking out for them.

Bitcoin Lending Yield Explained

At the end of the day, you want to put your bitcoin where you are going to get the most return for lending it out. To do so, you may want to look at lending options that provide the most yield on your investment. The yield on a bitcoin loan represents the earnings from the loan over a given period of time inclusive of any applicable fees incurred. For example, a loan that returns $5 on a $100 investment has a 5% yield.
However, yields are often diminished due to the exorbitant fees taken from lenders by financial institutions. In the same scenario, a $2 fee would reduce the yield substantially, down to 3% ($5 return – $2 fee = $3 total return / $100 investment = 3% yield).
Luckily, this isn’t the case with BlockFi, as the crypto lending platform earns only a small spread as a result of each loan. This allows the majority of the proceeds from a loan to be distributed directly to investors.
Furthermore, the beauty of compound interest on a BIA account will increase your yield on your lent out crypto even higher. All returns on BlockFi loans are invested directly back into a BIA account, and in turn growing the account’s investment principal and overall returns.
Because of the ever-changing nature of the cryptocurrency markets, yields can fluctuate and are determined based on market conditions. So, always be sure to see the most up-to-date return and yield information. Be wary of services that guarantee a return. For example, BlockFi’s rates are subject to change.

Finding the Right Bitcoin Borrowers

Bitcoin lenders are only able to earn interest because of the individuals and institutions that are in search of ways to borrow bitcoin or other cryptocurrencies for their own purposes. This means, when it comes to interest returns, it very much matters to whom those funds are being lent. If borrowers are not able to pay back their loan, then lenders will not see the returns they had been hoping for. A bitcoin lending platform, such as BlockFi, will assess the creditworthiness of borrowers and work to drastically reduce instances of missed or late payments. Doing so allows investors to receive higher rates of interest for their deposits.
Individual borrowers can often be tricky to manage and assess, especially when it comes to digital asset lending. For this reason, BlockFi utilizes institutions, and not individuals, as counterparties in crypto loan transactions. These institutions include investment funds, over the counter market makers, and businesses which utilize cryptocurrency in their operations. Such institutions are more trustworthy and likely to pay back their outstanding debts, providing a more secure stream on interest for lenders.
In its vetting process, BlockFi determines the creditworthiness of an institution, and assesses the financial health of the potential borrower. Through its underwriting process, the platform takes into account all types of financial and business data to create a credit profile for the institution. This helps the bitcoin lending platform when it comes to pricing, deal terms, and setting borrowing limits.

Earn Bitcoin with Your Bitcoin

After years of being viewed as a speculative asset, cryptocurrencies are now being taken seriously as a new asset class. As such, financial infrastructure has been created to support the cryptocurrency industry, and allow banking and other financial services that mimic the services already existing in other asset classes.
Doing nothing with your bitcoin and other cryptocurrency is like putting these assets under your mattress. Instead of taking advantage of earning interest on bitcoin deposits, you are wasting a golden opportunity to allow your bitcoin to work for you, and grow your digital asset holdings by simply lending them out to another party. Bitcoin lending is a great way to grow your assets while looking toward the future of the digital currency revolution.

 

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Lendio Acquires Billy, Unveils Cloud-Based Small Business Accounting Platform with Integrated Access to Capital

0 comments at July 24, 2019

From :: https://www.lendio.com/press-releases/lendio-acquires-billy/

Lendio Acquires Billy, Unveils Cloud-Based Small Business Accounting Platform with Integrated Access to Capital

By
Sunrise, a Lendio company, will provide small business owners robust accounting software and immediate access to capital

SILICON SLOPES, Utah – July 23, 2019 – Lendio, the nation’s leading marketplace for small business loans, today announced the acquisition of Billy and the launch of its bookkeeping software for small businesses. Sunrise, a Lendio company, is the first freemium bookkeeping software to meld accounting, cash flow management, loan and credit information into a single platform. This user-friendly cash flow, billing and expense tracking solution also provides solopreneurs and small business owners customized access to Lendio’s marketplace of business loans and award-winning customer service.

Small businesses say cash flow is one of the biggest challenges they face this year, according to a recent Lendio survey of 550 small business owners. Additionally, data from the Lendio platform shows that two-thirds of micro businesses are not currently leveraging an online accounting software. Sunrise aims to give business owners more accurate, real-time insight into their business finances. In turn, business owners will be able to better visualize their cash position, better understand their financial health and better predict their future capital needs.
“We are very excited to announce the acquisition of Billy and the re-brand to Sunrise. The Sunrise platform will bring together previously disparate sources of information for small business owners, such as accounting, loan and credit data,” said Brock Blake, CEO and founder of Lendio. “It’s our goal for Sunrise users to feel more confident in making financial decisions that help their businesses grow.”

View of Sunrise dashboard
Backed by proven technology, Sunrise comes in two versions. The first is a free plan that removes unnecessary enterprise features and allows businesses to do both cash and accrual-based accounting. The platform’s invoicing system allows users to create personalized invoices, as well as automate recurring invoices and pay reminders. Customers can easily pay by credit card through the platform’s secure customer portal, and business owners can see when invoices have been viewed, as well as create quotes and estimates online.
In addition to billing, the free version also allows business owners to easily sync bank accounts and credit cards, categorize and track expenses and income, and store receipts in a central location. Reports including profit and loss, balance sheet, tax summary, accounts receivable and customer statements allow business owners to keep better tabs on their financial health. Security is also a priority; users’ data is backed up to multiple data centers and encrypted.
Sunrise Invoice sample

A paid subscription to Sunrise allows growing businesses to expand accounting capabilities by leveraging Sunrise’s tech-enabled bookkeeping experts. More cost-effective than alternatives on the market, Sunrise’s paid subscription allows business owners to automate and streamline accounting tasks, freeing up their time to focus on building their businesses. With access to bookkeeping professionals, business owners will never have to reconcile their own books again. Sunrise’s expert bookkeepers use a three-part system to recognize revenue, take care of invoicing and reconcile books monthly. The paid version also integrates with Stripe, PayPal and Square.

Sunrise sample profit and loss statement

A Sunrise mobile app is currently in development. Over time, other features will be added to Sunrise including auto categorization, a tie-in to tax software as well as more sophisticated loan integrations.
Lendio was founded in 2011 to provide a marketplace of financing options for small business owners. To date, Lendio has facilitated close to $1.5 billion in financing through more than 70,000 loans to business owners in all 50 states. With this access to capital, Lendio’s small business clients have generated an estimated $5 billion in economic output and created more than 35,000 jobs in communities nationwide.

About Sunrise

Sunrise, a Lendio company, is a cloud-based small business accounting platform. With integrated access to capital through Lendio’s marketplace of over 75 lenders, Sunrise is the first freemium bookkeeping software to meld accounting, loan and credit information into a single platform. A user-friendly billing and expense tracking solution, Sunrise gives solopreneurs and small business owners more accurate, real-time insight into their business finances, allowing for more streamlined accounting, invoicing, reporting and access to capital. For more information about Lendio’s acquisition of Billy, visit https://sunriseapp.com/billy-sunrise-faq/.

About Lendio

Lendio is a free online service that helps business owners find the right small business loans within minutes. With a network of over 75 lenders offering multiple loan products, Lendio’s marketplace is the center of small business lending. Bringing all options together in one place, from short-term specialty financing to long-term, low-interest traditional loans, our technology makes small business lending simple and decreases the amount of time and effort it takes to secure funding. For every loan facilitated on Lendio’s marketplace platform, Lendio Gives, an employee contribution and employer matching program, donates a percentage of funds to low-income entrepreneurs around the world through Kiva.org. More information about Lendio is available at www.lendio.com. Information about Lendio franchising opportunities can be found at www.lendiofranchise.com.

 

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NASAA Warning on Initial Loan Procurements: “Crowdfunding Meets Blockchain”

0 comments at July 24, 2019

From :: https://www.crowdfundinsider.com/2019/07/149818-nasaa-warning-on-initial-loan-procurements-crowdfunding-meets-blockchain/

NASAA Warning on Initial Loan Procurements: “Crowdfunding Meets Blockchain”


By

The North American Securities Administrators Association (NASAA) has issued an investor advisory on “Initial Loan Procurements.”
Initial Loan Procurements are described as “Crowdfunding Meets Blockchain.”
To quote NASAA:
“Companies using blockchain technology need to raise capital just like any other company. One way these companies accomplish that is through initial coin offerings (ICOs), which require the new company to create tokens that can be sold to investors and used for the development of new projects. An alternative fundraising method is catching the interest of investors. Initial loan procurements allow companies to raise capital without the added burden of creating tokens.”
NASAA describes initial loan procurements as a crowdfunding method that allows borrowers and creditors to enter into loan agreements through legally binding smart contracts stored on the blockchain.
In brief, similar to a traditional loan, the investor becomes a creditor and lends money to the company.
Just like ICOs, initial loan procurements are marketed to investors worldwide. The investor receives a legally binding contract with the company that is public on the blockchain.
NASAA states: Investors Beware When Investing in Initial Loan Procurements
  • Initial loan procurements may appeal to investors who want to get into blockchain technology but are wary of the risks of ICOs.
  • Investors may be given a false sense of security that their money will not be lost because the smart contract cannot be altered on the blockchain.
  • Investors may be falsely told that the investment is less volatile because the return is tied to the performance of the company and not to the value of the coin issued in an ICO.
  • Investors may be falsely promised guaranteed returns.
  • Investors may be falsely told that companies raising capital using initial loan procurements are vetted, making the investments secure.
  • Investors may be told the gains are not taxable because they are debt, which may or may not be true.
  • Investors may be told that initial loan procurements are not subject to the same regulatory scrutiny as other investments.
NASAA advises individuals not to invest money you cannot afford to lose. Investing in these loans are “entirely speculative.”
Think with your head, not your heart. Scammers often use language intentionally designed to provoke some emotional reaction in their targets. Whatever the appeal, remember that investing is a business decision. Ask yourself, “Is this investment right for me?”
You may read the NASAA warning here.

 

US City Plans to Sell Tokenized Bonds in ‘Initial Community Offering’

0 comments at July 24, 2019

From :: https://cbw.cryptoassetrating.com/Article/1033/crypto-business-world-us-city-plans-to-sell-tokenized-bonds-in-‘initial-community-offering’

US City Plans to Sell Tokenized Bonds in ‘Initial Community Offering’

By Rating Crypto Asset: Wed, 24 Jul 2019

Confronted with substantial federal funding reductions, Berkeley, California, is turning to crypto tokens as away to fund services like affordable housing.
Mayor Jesse Arreguin and councilman Ben Bartlett have teamed up with San-Francisco-based investment startup Neighborly to advance an initiative that would divide municipal bonds into micro-bonds and then sell them as tokens in what they call an “initial community offering.”
“Essentially, we would like to explore some new ways of financing because we have terrific needs, and we’re concerned about our ability to fulfill our moral and legal obligations for our residents here,” Bartlett said, according to CityLab, adding:
“The resistance requires a coin.”
Bartlett and Arreguin said that breaking up the bonds would allow people to invest in projects of their choosing in low denominations. Meanwhile, transferring the buying and selling process to a blockchain would mean reduced transaction costs and transparent city finances.
Because the tokens would be backed by the underlying bond, Bartlett says the initial community offering would be less risky than a typical ICO.
Likewise, Neighborly CEO Jase Wilson said, “Berkeley is an extremely strong and fiscally disciplined borrower.”
The project’s backers hope that by selling the micro-bond tokens, they will eventually be able to fund affordable housing projects, but they plan to start with smaller ventures, such as purchasing an ambulance for a fire station. They hope to hold their ICO in May.
“This municipal coin, this token, whatever you want to call it, it’s meant to…hopefully produce a really demonstrable new paradigm of shared prosperity,” Bartlett said.
Source: Coindesk.com

 

Germany Rushing to Pass a Crypto Bill to Tokenize Bonds

0 comments at July 24, 2019

From :: https://cbw.cryptoassetrating.com/Article/1031/crypto-business-world-germany-rushing-to-pass-a-crypto-bill-to-tokenize-bonds

Germany Rushing to Pass a Crypto Bill to Tokenize Bonds

By Rating Crypto Asset: Wed, 24 Jul 2019

Germany is moving towards embracing crypto, blockchain and tokenization with discussions on-going in Berlin where they plan to create an enforceable legal framework for the issuance of bonds on the blockchain.
“We consider it of paramount importance that we advance blockchain technology for Germany in 2019,” said Thomas Heilmann, Blockchain spokesman for the CDU/CSU parliamentary group. CDU and CSU being the current coalition running Germany.
They plan to introduce a digital value right where bonds can be issued as tokens with such rights enforceable by what they call notaries in Germany. Unlike in US, they are of considerable more standing and can be seen as sort of half-way between a barrister or attorney and a judge.
“We’re think about integrating the German notary system into the settlement,” Heilmann says. So if a token issuer promises returns through annual interest payments or otherwise and fails to deliver, investors can take enforcement action through effectively the court system.
The notary would then have many options depending on the situation same as in ordinary civil proceedings, including ordering the bank to transfer funds to investors if the issuer has any in the bank account, or order house/property or business sales and so on.
According to a leading German paper, industry representatives are embracing the CDU plan. “From an investor’s point of view, the idea is good, because claims can thus be enforced in the case of a dispute,” says Florian Glatz, President of the Blockchain Federal Association.
There’s some discussion on whether such bonds can only be issued by intermediaries, like banks or stock exchanges. “That would take the blockchain idea ad absurdum and introduce central players again,” says Glatz.
However, there appears to be a consensus across parties that blockchain finance should be embraced, with the opposition pushing the government to hurry up.
“The federal government has finally woken up,” says Frank Schäffler, blockchain expert of the FDP which is currently in opposition. He adds:
“Now it has to be fast. Crypto issuers and investors seek a regulated financial center that is internationally presentable for their business.
After bonds, stocks must also come to blockchain. Other countries are already ahead. For example, Liechtenstein submitted the draft of a Digital Law on Value Added Rights in 2018. And Malta is promoting itself as a crypto hub with similar initiatives.”
There are apparently 174 blockchain start-ups in Germany, 84 of them in Berlin. They seemingly missed the ICO wave in 2017, with Germany now looking to follow France in embracing this industry.
That could mean the entire European market, which is about as big as USA’s economy, might now become a very favorable environment for the crypto and blockchain industry.
They have one distinguishment among major economies. Boerse Stuttgart, the second biggest stock exchange in Germany, is still the only one of its size to offer somewhat direct crypto trading through a subsidiary.
On the traditional stock exchange, they’re now listing a number of crypto Exchange Traded Notes (ETNs).
Other stock exchanges have also announced plans to launch crypto trading later this year in different forms, with a potential unique contribution by Germany to this space being its industry.
From smart cars to electricity grids, some German industry has been testing blockchain tech one way or another starting as far back as 2016.
While Berlin especially stands out for its underground tech culture, with bitcoin nodes there close to overtaking even USA.
Their elected have arguably been somewhat behind until recently, but that could be to their benefit if they have learned from others’ mistakes as competition now heats up across all major jurisdictions.
Source: Trustnodes.com

 

Germany approves tokenized real estate bond sale

0 comments at July 24, 2019

From :: https://medium.com/@lendoplatformltd/germany-approves-tokenized-real-estate-bond-sale-c672f483b23e


According to Coindesk, a startup called Fundament, has been given the green light in Germany to issue the first tokenized real-estate backed bond that can be widely offered to individual investors.
Germany’s financial regulator BaFIN gave its approval this week to the Berlin-based firm for the 250 million euro ($280 million) offering. Because it is regulated, the token will be open to any retail investor anywhere with no minimum investment restriction. As Coindesk remarks, “In other words, someone in, say, Indonesia will be able to buy 100 euros worth of ethereum tokens and thereby indirectly invest in German commercial property.”
BaFIN told Coindesk: “We can confirm that we granted approval for a Fundament Group prospectus. It has indeed been the first time we have approved a prospectus regarding blockchain-based real estate bonds, but not the first time in respect to blockchain technology as such.”
Fundament will start marketing the token next month, which will run on the public ethereum blockchain using the ERC-20 standard.

Blockchain real estate is a fast growing space. Florian Glatz, co-founder of Fundament Group, said typically what has been seen in the past are private placements that have not required a prospectus or a financial market authority’s approval. One example of this occurred back in Marche, when Inveniam Capital Partners tokenized some $260 million in four private real estate and debt transactions, starting with a WeWork-occupied building in downtown Miami, Florida. And there are other examples.

But Fundament is doing something radically different. Glatz told Coindesk: “The reason we went through this long tedious process with regulators was to get rid of any restrictions. Normally these projects are limited either by the minimum investment amount, which would be north of €100,000 or limited heavily in the amount of investors you could have. So it’s the first really like mass-market tokenized real estate for the world.”

He added, “Holding a token enshrines a legal claim of the holder against the issuer of the bond to pay them an annual dividend of around 4–8 percent, and obviously once the run time of the fund is over and there is an exit, then the token holders get the complete value that was within this fund.”
If you want to own real estate in Germany, look out for the launch of the Fundament token next month.

 

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CoinLoan Announces GUSD’s Delisting

0 comments at July 23, 2019

From :: https://medium.com/coinloan/coinloan-announces-gusds-delisting-f28faf812e0

CoinLoan Announces GUSD’s Delisting

Starting on August 1st, GUSD will be removed from CoinLoan stablecoin list

CoinLoan
by CoinLoan
Jul 23 · 

Why is GUSD being removed from CoinLoan?

First, the GUSD has yielded its position on the crypto-market, according to CoinMarketCap data. In December 2018, the market capitalization of GUSD was $103.91 million, ranking as the 49th most capitalized cryptocurrency. However, today, it has lowered to $12.23 million, dropping to 200th place in the rankings.

What is going to happen next?

On August 1st, GUSD will be delisted. This means users will not be able to deposit or use GUSD as a loan currency on the platform.

What if I still want to use a stablecoin on CoinLoan?

No problem! Stablecoins may come and go, but CoinLoan always has something else to offer.

 

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CoinLoan Welcomes Bitcoin Cash to Their List of Collateral Currencies

0 comments at July 23, 2019

From :: https://medium.com/coinloan/coinloan-welcomes-bitcoin-cash-to-their-list-of-collateral-currencies-ab7de76e3236

CoinLoan Welcomes Bitcoin Cash to Their List of Collateral Currencies

CoinLoan is among the first to offer loans secured by Bitcoin Cash

CoinLoan
By CoinLoan

Keep in mind:

  • BCH is now available for deposit and withdrawal in the My Wallet tab.
  • Users can deposit BCH to use as loan collateral. However, users cannot lend or borrow BCH coins.
  • BCH deposits are free of charge.
  • BCH withdrawals are subject to a fixed fee of 0.001 BCH.

What Is Bitcoin Cash?

Bitcoin Cash is a cryptocurrency and a P2P payment system, which entered the crypto market as a Bitcoin hard fork product on August 1, 2017. Currently, BCH has a market capitalization rate exceeding $6 billion.

Why Is Introducing BCH to CoinLoan Vital?

First, this update means the extension of the CoinLoan list of cryptocurrencies. The more cryptocurrencies available, the more likely users are to come to the CoinLoan platform to benefit from their cryptoassets without selling them.

How Does BCH Work on CoinLoan?

From now, BCH is available for deposit and withdrawal from CoinLoan in the My Wallet tab. To upload BCH on your account, open the My Wallet tab, find BCH, and hit the Deposit button.

 

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