It’s vital to note that there are around 8-10 private placement trade platforms that are up and running. Perhaps the main reason you or your clients potentially think that there’s actually more, is because there’s many ways to take part in these platforms via a range of different institutions, but in reality the trade programs always end up with the same 8-10 private placement trade platforms.
Given that there are different ways to access these same 8-10 trade platforms, this logically means there are a number of institutions and agents presenting their own packages and creative ways on how to initiate a trade program. Once the collateral is in place and secured, the Principal passes all AML, KYC, and due diligence, and a trade agreement is signed, a Principal can then access the trade program.
It’s the asset piece of the puzzle which makes the difference when using Bitcoin as collateral. The institution that we can connect you to, will use your Bitcoin as collateral. The Principals Bitcoin will be requested to be moved to a custodial wallet whereby the custodian has total control over the wallet. The Bitcoin is never at risk plus it’s still under the complete ownership of the Principal. The institution taking on the Bitcoin as collateral will then monetise the collateral at approximately 80% LTV, and then use the loan funds as leverage and enter a trade program in the stabdard way. There is a $5 Million minimum entry level for this program. But remember this… your Bitcoin is never at risk and is securely held by a custodian throughout the term of the trade program.
If you would like to find out more about a Private Placement Trade Program For Bitcoin BTC in Gibraltar, or would like to request a call, contact GTES.