According to Loda’s CEO, Loda was the first company in Australia that allows users of crypto to borrow Australian dollars.
Australian startup Loda, a lender that accepts crypto as collateral, has completed its first liquidity pool with the help of some heavyweight investors from the world of decentralized finance (DeFi). Things are definitely heating up in the cryptocurrency space in australia.
According to Friday’s press release, Loda attracted 15 investors, who invested $15 million in the first of three institutional liquidity pools.
Two of the remaining pools are still available and will be completed when demand is there, Dion Dalton Bridges, founder of Loda and CEO, said to CoinDesk via Telegram.
Framework Ventures, Spartan Capital and One Block participated in the first liquidity pool.
Loda’s first iteration was one of the earliest in the country, allowing users to borrow Australian dollars against crypto.
Users can use the platform to store their crypto assets in exchange for dollars.
Although banks won’t accept crypto to secure money for a house, car, boat, or trip, Loda is trying to give its users that option.
A traditional collateralized loan is one where someone borrows more money by borrowing from a house. Dalton-Bridges stated that this is a new type of collateral. It is the crypto.
People who believe cryptocurrency is a long-term investment can borrow the cash short-term. They will still be able to benefit from the “still capture all the potential upsides” of an appreciation in crypto’s price.
Dalton-Bridges stated that this is a good option for crypto owners who need cash, but not want to sell. Borrowing against crypto has the advantage that you don’t have to sell your crypto, but can still access cash right now at low interest rates.
When the platform launches in August, the founder predicts that all loans will have a flat rate of around 5%.