Company Offers Loans Against Bitcoin Holdings
With the major rise in the value of Bitcoin and increase in the number of ICOs in 2017, there are many who have the problem of being crypto rich, yet cash poor. As there can be hurdles to jump when selling large amounts of Bitcoin for fiat currency, Dominion Capital wants to offer up a new opportunity.
Based in New York City, Dominion Capital wants to allow people to borrow against their crypto holdings; specifically, only Bitcoin, at this time. Dominion believes that now is the time to establish the worth of Bitcoin as an asset by broadening its services into this area. Dominion's CEO, Mikhail Gurevich was quoted:
For crypto holders, this gives them the opportunity to borrow against their own assets in crypto, or to already invested by supporters. Gurevitch believes that this could bring in some of the largest ICOs, many whom have raised millions in assets which are difficult to liquidate. Gurevitch states that they will likely start by offering loans against only Bitcoin first, but intends to expand into other cryptocurrencies as they become more viable.
Dominion hopes to raise $5M in their Series A, which will allow them to further develop their service and hire a team. In the next round they expect to raise $100M in a credit facility in order to finance loans. Gurevich stated further:
While no terms have been finalized, Gurevich expects that Dominion Capital should be able to lend at approximately 50% of the value of the asset, with specific terms in place in the instance that the value of the collateral asset drops dramatically.