Bitcoin broker Relai has launched a new offering in collaboration with Sygnum Bank.
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Those looking to access short- to medium-term liquidity from their Bitcoin holdings can now do so through Lombard loans.
Relai is introducing the possibility for private, qualified investors to take out Bitcoin-backed loans. The aim is to provide clients with liquidity in euros or Swiss francs without having to sell their Bitcoin holdings.
According to a statement from the startup, founded in 2019, the offering provides wealthy private clients and SME customers with a new level of financial flexibility. With this product, Relai becomes the first broker in Europe to enable Bitcoin-backed loans. No details regarding the loan conditions were disclosed.
Milestone For A Startup
This setup allows clients to continue betting on a potential upward trend in Bitcoin’s value or to avoid triggering taxable events, the company adds.
This partnership with Sygnum Bank is a major milestone for us as a startup, said Julian Liniger, CEO and co-founder of Relai. Bitcoin-backed loans are a groundbreaking innovation for our high-net-worth clie
Questions & Answers
Q.Which customers can access Relai's new Bitcoin-backed loans?
Which customers can access Relai's new Bitcoin-backed loans?
The offering is available to private, qualified investors, specifically wealthy private clients and SME customers. It aims to provide them with greater financial flexibility.
Q.What is the primary benefit for customers taking out these Bitcoin-backed loans?
What is the primary benefit for customers taking out these Bitcoin-backed loans?
Customers can access liquidity in euros or Swiss francs without needing to sell their Bitcoin holdings. This also allows them to continue betting on Bitcoin's potential upward trend and avoid taxable events.
Q.Which currencies can customers receive for these loans?
Which currencies can customers receive for these loans?
Clients can receive liquidity in euros or Swiss francs. The aim is to provide these funds without requiring them to sell their underlying Bitcoin assets.
Q.What is the significance of this product for Relai?
What is the significance of this product for Relai?
With this product, Relai becomes the first broker in Europe to enable Bitcoin-backed loans. The company also states that this partnership with Sygnum Bank is a major milestone for the startup.