Bitcoin-backed lender Vield finalising $50m credit line for crypto loans
After a favourable ATO ruling, Vield is set to secure Australia’s first warehouse facility for crypto-backed loans from a traditional lender.
Crypto-backed loan provider Vield is finalising access to a credit warehouse facility worth up to $50 million from a traditional debt provider after securing a tax office ruling the company hopes will reassure potential customers and drive demand.
Vield is finalising the term sheet and legal documentation for what head of business development Chantra Hang told Capital Brief will be “the first warehouse facility in Australia that’s backing crypto-backed loans". He declined to name the lender.
As of late-December, Vield had issued more than $60 million of loans to more than a thousand customers, which Hang believes makes it the “largest [crypto-backed] lender in Australia by far”.
Profit is taken on the difference between the interest on the loans taken by Vield and the interest collected from the crypto-backed loans it issues. The company charges a 13% per annum interest rate as well as a 2% origination fee upfront on loans issued against cryptocurrency collateral, which has so far been almost entirely in Bitcoin.
