London-based financial services challenger Mode announces plans to roll out its first crypto-backed lending solution for companies holding Bitcoin and Ether
London-based financial services challenger Mode has announced its first product, a crypto-backed lending solution for businesses, is due to launch later this month. Mode is offering early access rates for customers who sign up by June 15, 2019.
Mode aims to become the first fully-regulated, digital-asset bank in the UK, and is actively working to build an ecosystem of products and services that combines the best of traditional and digital finance
Mode’s lending solution is flexible, business-first and is aimed at companies that hold Bitcoin and Ether – whether through direct purchase, investment or as payment from clients. It offers loan terms of up to ninety days with further extensions possible and can be repaid at any time without incurring any fees.
A subsidiary of fintech group R8 Limited, Mode is backed by a highly-experienced team of investors and advisors and has developed this product specifically to ensure companies maintain full ownership and 100% of digital asset profits should the assets’ price increase. All of this, while having access to the traditional currency still needed to run most business operations today.
Mode offers an intuitive loan application process, and funds are expected to reach applicants’ bank accounts within twenty-four hours. Initially, the loans will be offered in Pounds (£) and Euros (€) and will be backed by Bitcoin (BTC) and Ether (ETH), with support for more crypto assets and cryptocurrencies to be rolled out in the coming months.
Alex Ryvkin, CEO of Mode, said, “Holders of both traditional and digital assets are demanding solutions that mix the best of both old and new finance. This is where Mode enters the equation. We trust that our approach will enable us to create a reliable environment that makes lending, investing and borrowing safer for everyone”.
He also added, “Today, most crypto-backed lending solutions in the market are created with retail customers in mind. This is why we chose to design a product that catered to the needs of companies in the ecosystem, ensuring they have equal access to the capital that will help them successfully grow their business and further advance the tokenised economy.”
How Mode’s crypto-backed loan for businesses works:
- Loan amount: No maximum, from £1,000
- Loan offered in: Pounds (£) and Euros (€)
- Crypto accepted: Bitcoin (BTC) and Ether (ETH) – Support for more digital assets in the coming months
- APR: 12% compounded daily
- Loan-To-Value: 60% for BTC and 50% for ETH
- Loan term: Up to 90 days with possible further extension
- Origination fee: 0%
- Early repayment fee: 0%
- Repayment terms: Repay at any time within a 90-day period from taking out your loan