Canadians holding bitcoin now have another way to access cash without selling their digital assets.
Montreal-based fintech Shakepay has launched BLOC, a bitcoin-backed line of credit that allows eligible customers to borrow against bitcoin held on its platform.
The product is aimed at customers who want liquidity for a major purchase, business opportunity or unexpected expense while maintaining their bitcoin position. BLOC is available within the Shakepay app, where customers can track their available credit, payments, collateral and loan-to-value ratio.
“Canadians who hold bitcoin shouldn’t have to choose between their long-term conviction and the short-term opportunities they want to pursue,” said Shakepay CEO Jean Amiouny. “You shouldn’t have to sell what you’ve worked to build to fund what comes next.”
Credit availability, borrowing limits, pricing and collateral requirements vary according to a customer’s eligibility and the applicable product terms. Shakepay did not disclose standard interest rates, loan-to-value limits or other pricing details in its announcement.
Bitcoin-backed borrowing can give holders access to cash without triggering a sale, but it also ties the credit facility to a volatile asset. A decline in the value of pledged bitcoin would increase the loan-to-value ratio, making collateral monitoring an important part of the borrowing experience.
The launch caps a run of product announcements as the company deliberately evolves from a crypto-focused experience into a regulated platform built to support everyday money movement.
Earlier this week, it introduced savings accounts that pay interest on cash weekly in bitcoin, including a promotional five percent rate for Shakepay Blue customers. Last month Interac announced that Shakepay joined the Interac e-Transfer® service as a Participant.
Founded in 2015, Shakepay says more than 1.5 million Canadians have used its platform and over $15 billion in digital currency has been exchanged through the service.
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