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Bitbond Relies on Bitcoin to Complete Cross-border Loans

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Banks all over the world are paying close attention to Bitcoin. Although they may not expose clients to cryptocurrency directly, Bitcoin offers benefits other tools do not provide. Bitbond, a rather new German ban, is using Bitcoin to let clients transfer loans anywhere in the world. The world’s leading cryptocurrency borderless nature allows for some innovative business models.

German banks have always been interesting creatures. They often tend to embrace innovative technologies. Some banks do so faster than others. Bitbond is a relatively new player in this industry, but it’s making big waves pretty quickly. Founded by Radoslav Albrecht, the firm is embracing Bitcoin for a big part of its day-to-day operations.

A Popular Service by Bitbond

While traditional banks use Swift to transfer value across the world, Bitbond relies on Bitcoin. Lending money on a global scale is often encumbered by solutions such as Swift. Additionally, it is rather expensive to do so when using traditional methods. Bypassing all of these drawbacks is not easy by any means. It even warrants an unorthodox and somewhat controversial approach.

For Bitbond, Bitcoin is the only viable solution in this regard. The new bank lets clients hold loans in digital tokens for a short amount of time. Afterward, the loan is turned into the currency of the country they wish to receive funds in. By tapping into Bitcoin, a lot of new opportunities are created in quick succession. Payments work independently of where customers are. It is a feature no traditional bank can offer as of right now.

As one would expect, this service has gotten a lot of attention. Clients loan close to $1m a month, most of which is transferred using Bitcoin and other cryptocurrencies. All loans are pretty small in size, but the number of loans is rising gradually. Bitbond officially obtained its banking license back in 2016. It will be interesting to see whether other banks will follow this example in the near future.

Header image courtesy of Shutterstock

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