The blockchain technology and the traditional banking system have a tense relationship, at best. However, an observant eye might’ve come across speculations regarding the possibility of seeing a central bank launching a crypto token.
With each passing day, it seems that the traditional financial industry is coming to terms and becoming more receptive to the whole idea of introducing blockchain technology as a part of their apparatus.
Bankera is one out of many fintech startups that are trying to fill in the gap and successfully merge the traditional fiance world along with the innovations of the blockchain. Ultimately, it aims to become a one-stop-shop for all core financial services, and it’s making impressive progress.
What Is Bankera?
As originally touted in its whitepaper, Bankera is focused on creating a bank for the blockchain era. As such, Bankera aims to deliver the following services:
- Cryptocurrency Brokerage
- Cryptocurrency Exchange
- Cryptocurrency Loans
- Debit Card
- Payment Processing
- Investment Tools
Bankera Loans: Flexible and Secure Crypto-Backed Loans
Crypto-based lending platform Bankera Loans is on their priority list, and the guys behind the platform are doing a great job to stand out in the already crowded market.
The main difference stems from the higher percentage on the Loan-to-Value (LTV) ratio. Using Bankera Loans, users can get up to 75% LTV, while the primarily accepted industry-standard ranges between 25% and 50%.
The LTV represents an assessment of the lending risk. Therefore, the higher the LTV ratio is, the higher the risk, quite simple. This is why if approved, the loan will cost the borrower more. However, it also comes with certain perks as it might require significantly lower collateral reserved, providing the borrower with more funds for the same collateral amount.
Another feature that may be of interest to smaller crypto holders or people who haven’t tried taking out a crypto-backed loan before is a very low minimum — 25 EUR. This provides access to financing to virtually everyone, not just larger holders.
Different Loan Packages
Flexibility and custom services might be Bankera Loans’ strongest selling point. At the moment, there are three different loan packages designed to cater to the users’ various needs and capabilities. The packages are:
As the name suggests, this package includes the lowest rates and offers the broadest range of collateral options. Users can use BTC, ETH, XEM, and DASH as collateral. LTV is 25%.
This option is the middle ground, a balanced mix between a 50% LTV ratio and interest rates. Users going with this option can deposit two significant cryptocurrencies, BTC and ETH, as their collateral.
The package that makes Bankera Loans stand out among the competition offers a high 75% LTV ratio. Users can choose BTC or ETH as collateral options.
Variety of Use Cases
Bankera Loans serves a large variety of needs and purposes. For instance, crypto holders can put their assets to good use and a credit line for their holdings, getting up to 75% of the collateral value. Investment funds can use a crypto-backed loan to leverage their positions or to diversify trading portfolios. The list goes on.
Let’s face it — blockchain’s merger with the traditional finance industry is pretty much inevitable. As technology advances, so will the market and the demand for services such as Bankera Loans. It is great seeing the crypto lending market on the rise, yet it is quite natural to anticipate its oversaturation. Looking on the bright side of things, abundant supply is a net positive for the user; however, users will have to become more attentive before committing to any of crypto-lending platforms.