VIA SMS Group, the European alternative finance provider, has launched a new cryptocurrency-backed peer-to-peer lending platform called CryptoLoan.
The loans are issued in fiat currencies such as US dollars or euros, but cryptocurrencies such as Bitcoins are used as collateral. The borrower deposits the required amount of cryptocurrency as security and they get it back once they have repaid the loan.
The platform launched to Swedish residents this week but will be opened up to other European countries shortly.
Borrowers can apply for loans of up to SEK 150,000 (£13,083) with a term of 24 months.
“CryptoLoan is a huge gain for Bitcoin investors as it provides the freedom to enjoy benefits of investing in crypto without being forced to sell their investments,” said Justas Luzeckas, managing director.
“VIA SMS Group has chosen Sweden as the first country for CryptoLoan launch because of company’s experience and stable position on Swedish lending market. Additionally, with Sweden becoming the next blockchain hub, it instils confidence that this is the right market for the pilot launch. Our development plans, of course, include expanding to other European countries in the nearest future.”