It’s helpful to be mindful that there are somewhere between 8-10 private placement trade platforms that are operational. It’s possible that the true reason you or your clients could think that there’s actually a greater number, is because there’s many ways to to be a part of these platforms via a range of different institutions, but in real terms the trade programs always end up with the same 8-10 private placement trade platforms.
Given that there are multiple ways to access these same 8-10 trade platforms, this logically means there are a range of institutions and agents presenting their own packages and creative ways on how to initiate a trade program. At the point the collateral is in place and secured, the Principal passes all AML, KYC, and due diligence, and a trade contract is signed, a Principal can then be accepted into the trade program.
It’s the asset segment which makes the change when using Bitcoin as the method of funding. The institution that we can introduce 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 not at risk plus it’s still under the 100% ownership of the Principal. The institution taking on the Bitcoin as collateral will then monetise the asset at around 80% loan to value, and then use the loan funds as leverage and access a trade program in the stabdard way. There is a $5 Million minimum access level for this program. But remember this… your Bitcoin is not at risk and is safely 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 St Gallen, or would like to speak to an advisor, contact GTES.