One of the most talked-about topics in the world of finance at the moment is cryptocurrency. While major players like Bitcoin and Ethereum remain the most popular tokens, virtually every day another coin is gaining in popularity, receiving backing from a major institution, or being posted about by a celebrity with millions of online followers. This constant limelight is exacerbated by a 24/7 trading cycle and has led to wild swings in the market, creating overnight millionaires in some cases and destroying vast amounts of wealth in others. So many aspects of the cryptocurrency revolution are different from the norms we’ve come to expect from the stock market and have delayed adoption by large factions of “old school” investors. For many who are interested in cryptocurrency there is still a great deal of unknown, but one thing that has become clear is that blockchain technology could become a mainstay in many essential industries and even revolutionize them.

Evolution of Small Business Crypto Loans

As more retail investors and business owners have accumulated sizable amounts of cryptocurrency, lenders have started offering crypto loans using tokens as collateral for fiat currency. Binance, the largest current crypto exchange, offers its users loans in which one crypto can act as collateral for another. However, an obvious obstacle in both instances is the aforementioned volatility in the market, which can change the value of said collateral dramatically in a short period of time. This will undoubtedly lead to changes in the parameters crypto loan lenders use to generate approvals over time.

Logically, the next step in this emerging market would be the actual lending of cryptocurrency assets for business purposes. After all, many tokens are already backed by some of the most cutting-edge companies in the world, like Tesla, as well as some of the oldest banks in the United States, including BNY Mellon. The largest obstacle in this instance is the current ecosystem, which is quite limited in terms of how merchants could actually exchange cryptocurrency for goods and services. And again, the volatility in the marketplace would also require some creativity on the lender’s part when creating stipulations for the contracts. Despite these challenges, the space is gaining adoption quickly and will soon infiltrate virtually many areas of finance in some form or fashion. When this happens, those with an eye on the future – especially in the private lending industry – will stay abreast of the ongoing changes and embrace any new viable options.

As a leader in the alternative finance space, the MobyCap team prides itself on its ability to truly customize funding solutions to fit each of our clients’ unique needs. A large component of our approach centers around our comprehensive suite of funding options, which we are constantly evaluating. While we plan to continue on with our core products for the foreseeable future, we are constantly reviewing all possible options that could allow us to help small business owners get to the next level.

Don’t hesitate to visit our Solutions page for information on our funding options or email info@mobycap.com to discuss your working capital options.