I’m really excited to announce that today we have launched Abra Borrow for consumers and businesses — the next Abra service on the road to becoming a complete crypto bank. What this means is that Abra users never have to sell their crypto holdings but still have access to short term loans made in USD stablecoins.
For consumers Abra Borrow is immediately available in over 50 countries and 35 US states. Rest assured, we’re making it a top priority to roll out Abra Borrow in every market in the world as fast as we can. Abra Borrow will be available immediately, all you have to do is update your Abra app. Abra Borrow is now the third service at the bottom of the screen.
Businesses are now able to borrow against crypto holdings and earn interest in Abra as well. That includes businesses globally as well as most US states. To initiate a business loan against crypto holdings or to earn interest on crypto (or dollar) holdings as a business please contact us directly at [email protected].
Abra Borrow: No fees, easy to access, flexible terms
The driving force behind Abra Borrow is that Bitcoin and Ethereum will be more valuable in the future than they are today. So why sell them? Instead, within the Abra app you can use Bitcoin and Ethereum as collateral to take out a US dollar loan — all while still gaining any upside (or downside) in their price movement.
Unlike traditional loans or credit card applications, getting an Abra Borrow loan takes minutes. We don’t check employment status, or credit history, or any of that stuff. All that matters is how much Bitcoin or Ethereum you have to collateralize the loan.
To start the maximum loan amount for consumers will be $110,000. If you have crypto holdings to borrow against and wish to borrow more than this maximum please contact us directly at [email protected]. Business loans currently have no limits and are handled on a case-by-case basis.
The amount of collateral needed will adjust over the life of the loan in order to account for the fluctuations in crypto prices. But in-app notifications and a loan health screen will help you understand what steps, if any, you need to take to meet the loan terms.
Interest rates, which start at 3.95 percent, will vary depending on how much collateral you put toward the loan, better known as the loan-to-value ratio.
Loan terms can be anywhere from 6 months to 24 months — you get to choose. Both the loan term and the loan to value ratio will impact your monthly loan payment. There is no penalty for early repayment and there are no closing costs or hidden fees.
The next step in the crypto bank
I’m really excited about this because I view it as our next step in becoming a full-service cryptocurrency bank. We started with the Abra trading product, and just recently launched our wildly popular interest earning product.
And now, Abra Borrow. Between these three services, we are hearing from the Abra community about all of the powerful financial decisions they are able to make. This includes using Abra for buying, selling, trading, or holding cryptocurrencies, using their cryptocurrencies to generate yield, or now — with Abra Borrow — finding more flexibility when and if they need access to short term loans.
As crypto adoption continues globally, we are really grateful to be at the forefront and to keep building useful products and services. If you like Abra Borrow, you’ll love what’s coming next!