The digital investment firm, Atomic Capital, has recently entered the crypto-backed lending field, offering the largest loan-to-value (LTV) available on the market yet.
Announced Wednesday, April 3, the financial services company will be launching 85% US dollar loan offer of the value of Bitcoin or Ethereum used as collateral. This stands as the highest LTV offer available up-to-date, exceeding other crypto-lending companies, such as BlockFi, which offers 50% LTV, Celsius Network, which grants 25%, 33% and 50% LTV rates, and SALT lending, which gives 30% to 70% LTV rates. Atomic Capital’s amount loan will range from $100,000 to $100 million, starting Tuesday next week.
According to Alexander Blum, the company CEO, the firm has already received a total of $80,000,000 worth of loans requests. Raising a total of $3.4 million in October after a Security Token Offering (STO) and gaining $250, 000 from Baroda Capital, the asset tokenization company is confident in offering competitive interest rates.
However, Atomic Capital will not be funding the loans. Instead, their business partner, Lockwood Group, a private investment firm, will be the one issuing the loans.
In a press release, managing director of Lockwood Group, Mark Klein, said that their partnership with Atomic is driven by the latter’s “strong network of global investors and leading digital investments position across technology, finance, and regulation.”
However, to compensate for the potential risks of high rate offers, the Atomic Capital will be charging 11% to 13% interest rates to its customers, which present a significant gap from its competitors. Meanwhile, there is no final say on whether Lockwood will be keeping the cryptocurrencies in cold (offline) or hot (online) storage wallets, nor did the two companies provide a copy of the terms and conditions under their loaning offer yet.