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YouHodler CEO Talks Traditional Bank Loans, Disruption and the Future of Crypto Lending

The YouHodler Team
February 9, 2019

The prices found in the crypto market might not represent some massive change going on but behind the scenes, this industry is undergoing a new, evolutionary period. Particularly interesting, is the sector of crypto lending, an industry still unknown to many HODLers out there. YouHodler co-founder and CEO Ilya Volkov joined us for a discussion on this up and coming ecosystem, the effect on traditional bank loans and where it will all go in the future.

Crypto-backed loans vs. traditional bank loans

Many competing crypto lending platforms make the mistake of comparing themselves with traditional banks and even going so far as saying they will replace them. That might make for a great headline but in reality, it’s not possible or even that helpful for society. YouHodler, on the other hand, does not plan to compete with traditional banks. Instead, the goal is to improve certain sections of the industry in which traditional banks may be lacking.

YouHodler aims to make the loan process faster, more sustainable, user-friendly and more beneficial to the loan seeker. The future of this new community we’re all apart of is not so much about disruption and replacement, but more about working side by side to improve our current solutions

YouHodler's role in the "cryptosphere"

You can think of this platform as an intersection of banking, exchange, and payments. A “FinTech ecosystem” if you will. The 2017-2018 crypto bubble was great for a select view but for the overall crypto industry, it was not really a positive event. Now that it’s over, crypto can focus on finding it’s value to society which can be explained in two dimensions:

1) Crypto is a new asset class (tokenization of assets, security tokens, utility tokens, SEC regulations, new projects, etc.)

2) It’s a payment tool. A new protocol for transferring funds quickly and easily around the world.

In order to support these two dimensions, we created a crypto-backed lending solution. On YouHodler, users put up their crypto as collateral in exchange for a fiat loan. It helps one to get cash without having to sell their crypto assets. In terms of collateral assets, we offer BTC, BCH, BSV, ETH, LTC and XRP, the most options of our competitors and we plan to add more each month. In addition, we currently support stable coins for loan payment and withdrawals (e.g. USDT) and will continue to add more stable coins and crypto-payment methods soon.

Coming in the near future, we will transcend our identity as a normal crypto lending platform and introduce a new app with credit card integration. Customers can use this just as they would a normal credit card but with a few additional features like using crypto collateral to manage your credit card limits and also to implement collateral free services for the YouHodler credit card.

Crypto lending and the future of global loans

The reasoning for mentioning all those details in the previous paragraph is in regards to the future. Traditional banking is not going away and nor are the loans that they provide. However, not everyone has access to traditional banking. Most of the developing world is far behind in this area but YouHodler, along with blockchain technology can help solve this issue. By giving those with limited access to banking services an opportunity for fiat loans, we are opening the doors for these individuals. Now, they have the capital to participate in the global economy in new ways.

Furthermore, crypto lending creates utility for coins. Maybe your BSV is not worth anything now, but you can get a fiat cash loan for BSV right now. Then, later on, when it finds value and rises in price, you will be happy for not selling it. If you wanted to get a loan with a traditional bank work and of course, they do not deal with crypto assets. That being said, we are not looking to replace the Goldman Sachs of the world. But we hope to create a service that a global audience will use in conjunction with what’s currently in place.

By working together with established lending methods, YouHodler hopes to unlock the value of crypto, speed up transactions, improve ID verification and make the overall process more accessible to a global audience.

To learn more about YouHodler and to receive the best value on your crypto backed loan, visit YouHodler.com today.