A noteworthy announcement has just been made: Strike – the Bitcoin-based payment company – has officially launched its Bitcoin-backed loan service in the US. This move opens up a new avenue for using Bitcoin in everyday financial life, especially for those who do not want to sell their digital assets for cash.
Borrow up to 2 million USD with BTC without selling
According to CEO Jack Mallers, users in 26 states in the US can access loans ranging from 75,000 USD to 2 million USD, with a minimum term of 12 months. The starting interest rate is 12% APR and may vary depending on market conditions and the risk assessment of each customer.
The special point is that users only need to use Bitcoin as collateral, without having to sell their BTC. This provides high flexibility for long-term investors or businesses that need capital while still wanting to maintain their crypto asset portfolio.
Jack Mallers asserts:
"You do not need to sell the best-performing asset in history to access liquidity. Now you have another option."
Global expansion targeting Europe
Although currently only launched in the US, Strike has announced plans to soon expand its BTC-backed loan service to Europe and other regions, in line with the company's global vision. This is seen as a potential game changer for the financial market linked to Bitcoin, as the demand for collateralized digital asset loans is steadily increasing.
Backed by many giants in the crypto industry
Strike is not only famous for its Bitcoin payment service but also as a partner helping El Salvador deploy infrastructure when the country declared BTC as legal tender in 2021. Additionally, Jack Mallers is also the CEO of Twenty One, a newly established Bitcoin asset management company through a SPAC deal, backed by Tether, Bitfinex, Cantor Fitzgerald, and SoftBank.
Although El Salvador has halted the mandatory BTC acceptance policy at the request of the IMF, President Nayib Bukele continues to accumulate Bitcoin, showing that long-term confidence in this asset has not diminished.
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Strike's Bitcoin-backed loan service is a clear example of how the financial ecosystem surrounding Bitcoin is expanding robustly, aiming for practical applications to serve both individuals and businesses. If implemented effectively, this model could spread and impact the global crypto market – including Binance users and investors in Asia.
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Risk warning: The cryptocurrency market is highly volatile and carries many risks. Using digital assets like Bitcoin to borrow money needs to be considered carefully. Always conduct research and assess financial capabilities before participating in any investment products.