USD Loans against bitcoins: No Credit Check needed. Multisig BTC is collateral.

[lender_digital]

We're starting a business providing loans in USD using BTC as collateral.

We've lined up a very reputable arbitrator (regulated financial entity under US law) as the third signatory in a 2/3 multisig, and want to know from the Bitcoin community if we're doing it right.

Check out the details and rates at http://lender.digital/digitalbank/lender.htm

If you want to HODL while you pay bills, you can help us out by indicating your interest!

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[davida]

The Loan process consists of four steps:

1.      After the Borrower agrees on a Loan contract, a new Loan is created by the Lender.Digital.

2.      All parties are required to review & authorize their participation in the Loan.

3.      The Borrower transfers bitcoin into the multi-signature address. Once Lender.Digital can verify that the Bitcoin collateral is secured in the multi-signature wallet, it approves the loan and the trustee then initiates the Loan wire to Borrower.

4.      The  bitcoin collateral is now locked in the MultiSig wallet for the duration of the Loan, until two of the three parties – Borrower, Lender.Digital and Trustee – agree to release it.

Release can go in the following ways:

·        When everything goes well, the Borrower & Lender.Digital agree and release the bitcoin to the control of the Lender.Digital. No intervention by the Trustee is required in this case.

·        When a dispute arises, the Trustee can intervene, review the case and decide which party to side with — either refunding the Loan to the Borrower, or releasing it to the Lender.Digital


What amount of bitcoin can stand as a collateral for $1000 loan?

[Cosbycoin]

Would appreciate your initiative but must tell you not all members in bitcointalk is technical savvy when it comes to advanced crypto methods.

Would have been nice if you can explain the "third signatory in a 2/3 multisig" part in plain terms.

[saqwe]

I do not see anything that points to legitimacy in this website apart from the word LOAN which everybody already heard before, the website does not look any where near professional and it introduced by someone that is not willing to answer questions on the thread.

Everything about this website look suspicious, i shall wait to be the 1000th client before i can lend or borrow funds from them.

[lender_digital]

What amount of bitcoin can stand as a collateral for $1000 loan?

We're getting started with fairly high fixed fees, due to our conservative stance on financial regulations, so larger loans make more sense.   

For a $10,000 loan lasting 6 months, you could start as low as 2.8x cover.  At the current BTCUSD price of $2,656, we'd ask to see 14.71 BTC in collateral.

You can see all our rates on our rates page.

[lender_digital]

Would appreciate your initiative but must tell you not all members in bitcointalk is technical savvy when it comes to advanced crypto methods.

Would have been nice if you can explain the "third signatory in a 2/3 multisig" part in plain terms.

Thanks for feedback.  We're working on simplifying our presentation. 

On the website we introduce the third party using an analogy with buying a house through escrow.  They are a neutral arbitrator that prevents fighting over whether the money changed hands, or how much collateral should be returned.

[lender_digital]

I do not see anything that points to legitimacy in this website apart from the word LOAN which everybody already heard before, the website does not look any where near professional and it introduced by someone that is not willing to answer questions on the thread.

Everything about this website look suspicious, i shall wait to be the 1000th client before i can lend or borrow funds from them.

Our designer is coming onboard soon, and you can expect changes.

This is not like most of the loans on the Marketplace board.  Those loans require a lot of trust, and they go wrong all the time.  We have access to capital, and we demand to see bitcoins as collateral.  You can only get cash if you show us something worth more!  That might sound crazy, but it makes sense if you think the exchange rate is going up.  

Our customer wants to sell at a future price instead of the current price, but get the cash today.

[232drialf]

Personally I don't see the point of this kind of lending. And I'm saying again personally. BTC can be exchange to any FIAT in  few minutes, I understand the idea of bitcoin price can go up and down in a day like hell but still.

I took a look on your websites and for me personally looks great. Good luck with it

[Danslip]

Good project. I will give a shot. Thanks for sharing with us