Bitcoin broker Relai has partnered with Sygnum Bank to launch Bitcoin-backed Lombard loans. The initiative aims to offer private, qualified investors an avenue to obtain short- to medium-term liquidity from their Bitcoin holdings without needing to liquidate the assets, according to a press statement.
Through this collaboration, clients can now access liquidity in euros or Swiss francs to meet their financial needs while retaining their Bitcoin investments.
This launch marks Relai as the first broker in Europe to offer Bitcoin-backed loans, showcasing a significant convergence of cryptocurrency and traditional finance.
The startup, founded in 2019, explained that the newly introduced loans are designed to provide maximum financial flexibility for high-net-worth clients and small to medium-sized enterprises (SMEs).
While the specific conditions for accessing these loans remain undisclosed, the initiative is envisioned to assist clients in reaping the benefits of potential price increases in Bitcoin. It also aims to help them avoid potential tax implications that could arise from selling their assets.
This partnership with Sygnum Bank marks a turning point for Relai, as it expands its offerings to cater to a broader range of financial needs.
“Bitcoin-backed loans are a game-changer for our high-net-worth clients, as they get access to cash without having to sell their Bitcoin. This gives them the liquidity they need to seize new opportunities, and it allows them to continue to benefit from the long-term growth potential of Bitcoin,” said Julian Liniger, CEO and co-founder of Relai.
This pioneering offering from Relai and Sygnum Bank is a testament to the increasing consumer interest in cryptocurrency-based financial products. It also highlights the expanding role of digital assets in the realm of mainstream finance.
As the retail sector continues to adapt and innovate, Relai’s foray into Bitcoin-backed loans may herald a new standard of services for consumers. This is especially pertinent to those seeking novel methods to unlock the value of their digital assets.
The potential implications for both high-net-worth individuals and the broader retail market are significant, setting the stage for further advancements in the domains of cryptocurrency and traditional banking.
