What is Crypto Collateralised Lending?
The fund provides provide loans with crypto as collateral and earns interest from borrowers.
Borrowers pay attractive interest rates given market demand/ supply dynamics, translating to attractive potentital returns.
Similar to bonds and other traditional debt instruments where investors earn interest and capital returns.
Fintonia Secured Yield Fund - a safer solution for professional investors to generate attractive returns.
How professional investors can find yield in the fast-growing crypto ecosystem
Thanks to growing acceptance of Bitcoin and other cryptocurrencies in the mainstream, professional investors are by now fully cognisant of the upsides of investing in crypto.
Apart from investing in crypto tokens directly or through a fund, there is another way for investors to profit within the fast-moving cryptocurrency ecosystem. We’re talking about finding yield, or passive income, through crypto.
Regulated Fund Manager in Singapore and Dubai*
*Provisional virtual assets license in Dubai
Secured and Safe
Loans are over-collateralised, minimalising risk of default
Specialists in financial services, tech, and digital assets
Who are the borrowers?
Arbitrage traders, crypto miners, corporates and crypto hedge funds. Such borrowers typically hold very large and valuable crypto holdings such as Bitcoin and Ethereum.
Why should I invest?
Given the inefficient crypto ecosystem, borrowers generate strong profits and hence able to pay high interest rates, generating attractive risk-adjusted returns for investors.
What happens if the cryptocurrency price falls?
Should the value of their cryptocurrency fall below a safe ratio due to price fluctuations, the borrower is obliged to top up within a set time limit. Otherwise the collateral can be automatically liquidated so that the loan can be repaid.
Who can be an investor?
We accept accredited investors and institutional investors only.
Why can't borrowers borrow from banks?
Traditional financial institutions are typically unwilling to hold cryptocurrencies as collateral, and banking regulations make it extremely expensive to do so.
What if borrowers are unable to repay the loan?
Risk of default is kept minimal as borrowers' cryptocurrencies are over-collateralised. In an event of a default, lender has the right to terminate the loan and sell the collateral to recover the loan amount.
Are the collaterised crypto safely stored?
They are deposited with a licenced, insured custodians, and held securely in an offline wallet. As a regulated fund manager, Fintonia complies with strict practices and uses best-in-class risk management techniques in our institutional-grade funds.
What cryptocurrencies do we accept as collateral?
We accept Bitcoin, Ethereum and USD.
Bitcoin collateralised lending: what are the potential risks and how they are managed?
It’s clear that investing in cryptocurrency directly has its challenges. Investors are therefore turning towards other ways to profit or even reap a stable income in the cryptocurrency environment. And one approach that is gaining favour is crypto collateralised lending via a private credit fund.