Switzerland-regulated platform Fulcrum has announced the launch of its crypto-backed loans and lending platform, supporting top coins and stablecoins.
Fulcrum Lending, the firm’s crypto-backed financial services business, will allow investors, individuals, and enterprises access to crypto lending products that pay interest on their idle digital assets.
In an announcement, the firm said users will also be able to tap into the platform for credit against their cryptocurrency portfolios.
The FINMA-licensed platform aims to offer full insurance, with plans to support Bitcoin (BTC) and Ethereum (ETH). Initial support also includes BNB, Solana and the USDT and USDC stablecoins. Fulcrum Lending goes live after six months of beta and alpha testing.
“Fulcrum has always been about empowering our community with innovative ways, and we prove this commitment by providing investors with a high-yield alternative to traditional savings accounts, while giving them a peace of mind with full insurance and regulation,” said Matthew Curtis, chief executive officer and founder of Fulcrum Lending.
To help address the shortcomings of traditional and crypto saving accounts, Fulcrum outlines an alternative that combines the predictable high returns of the crypto market with a fully insured platform.
Greater financial control and more flexibility are key features, with an annual percentage rate of up to on BTC and ETH. Users can tap into 13% APR on SOL and BNB, and up to 14% APR on the top two stablecoins of USDT and USDC. Fulcrum will allow crypto holders to borrow USDT at a 16% annual interest rate.
The firm has partnered with Lloyd’s of London for whole insurance of user deposits, while Fireworks will be the custodian of customer assets. Many crypto lenders hit the rocks amid the 2022 market collapse, but Fulcrum says that it takes a different approach amid a potential sector comeback.
Unlike most of the crypto yield products that focus on high-risk trading strategies, its offering will seek to generate returns “exclusively from lending activity.”
This will be via over-collateralized loans, meaning user deposits will fund secured loans rather than investments in volatile trading activities.
