It’s vital to note that there are around 8-10 private placement trade platforms that are up and running. Perhaps the honest reason you or your colleagues potentially think that there’s actually many more, is because there’s different ways to take part in these platforms via a selection 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 paths to gain acceptance to these same 8-10 trade platforms, this effectively means there are a number of institutions and agents showcasing their own proposals and creative ways on how to enter a trade program. Once the collateral is in place and secured, the Principal passes all KYC AML & DD, 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 asked to be sent to a custodial wallet whereby the custodian has primary control over the wallet. The Bitcoin is never at risk in addition it’s still under the complete ownership of the Principal. The institution using the Bitcoin as collateral will then monetise the collateral at approximately 80% LTV, and then use the loan money as leverage and enter a trade program in the tried and tested way. There is a $5 Million minimum entry level for this program. But don’t forget this… your Bitcoin is never at risk and is securely held by a custodian throughout the term of the trade term length.
If you would like to learn more about a Private Placement Trade Program For Bitcoin BTC in Shanghai, or would like to request a call, contact GTES.