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

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By
The YouHodler Team
February 9, 2019

The prices found in the crypto market right now don't represent massive growth 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 lending 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 makes 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, sustainable, user-friendly and more beneficial to the loan seeker. The future of this new community we’re all apart of is not about disruption and replacement, but more about working side by side to improve our current solutions

YouHodler's crypto lending role in the "cryptosphere"

YouHodler is best represented as an intersection of banking, exchange, and payments. A “FinTech ecosystem” if you will. The 2017-2018 crypto bubble was great for a select few but for the overall crypto industry, it was not 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 as 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 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, XRP, DASH, BAT and more, the most options of our competitors. In addition, we currently support stablecoins (USDT, USDCT) for loan payment, withdrawals and savings accounts that let users crypto earn interest up to 12% APR.

Available now in the app store, we are building a new app so users can get cryptocurrency loans on the go. Also coming soon will be a YouHodler credit card. . 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  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 backed loans creates utility for coins. Maybe your BSV is not worth anything now, but you can get a fiat cash loan for BSV. 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, 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.

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