Today, Milo, a Miami-based fintech firm, announced the release of its new crypto loan product. The product will allow customers to utilize their Bitcoin holdings as collateral when taking out loans. Following the move, users with Bitcoin, Ether and USD Coin can commit their digital assets to the company in exchange for US dollars. Milo says its crypto-backed loans are flexible and may be disbursed quickly if compliance is verified. This is likely to attract many customers, considering that they will still get back their crypto after repaying the loan.
How Milo plans to navigate the bumpy crypto lending ecosystem
When consumers have cryptocurrency but need fiat currency immediately, crypto loans provide a vital financial option. The company claims to have originated over $130 million in mortgages and has been regulated, licensed, and audited since 2020 when it established itself as a crypto mortgage provider. The company’ s web-based platform is a leading destination for customers in need of mortgages, loans and investments,
Since 2022, Milo has been working on the crypto loan product, and by the first quarter of 2023, they want to have it ready for most applicants. Customers can get started with the product by filling out a brief loan application and sending collateral to a reliable, approved custodian. Also, later in 2023, Milo will spread its services to borrowers in more US states, after initially launching in California and Florida.
A year-long slump in the cryptocurrency market, during which many lenders went out of business, is now giving way to a period of recovery. However, Milo says that it operates a very low-risk business model, so its customers can rest easy knowing that their assets are safe. Using data analysis, the company’s customers will be underwritten so that more people can potentially get approved for loans. Borrowing amounts will vary from $10,000 to $200,000 on a case-by-case basis.
Josip Rupena, CEO and Founder of Milo said:
“Many companies filed for bankruptcy because they took extreme levels of risk, and that’s not our philosophy. Simple, safe and transparency is what we want to deliver.”