Unchained Capital provides cash loans to long-term cryptocurrency holders. The company says it can fund loans up to $1 million in one business day and loans over $5 million in a few weeks.
The company says that other crypto loan providers requirer borrowers to forfeit control of their crypto assets and store with a single party like an exchange. This increases counterparty risk for both borrower and lender. If that single-party refuses to honor a transaction, neither borrower nor lender can recover the collateral. Their service is described as the “next evolution in crypto security” designed for entities with large holdings that need “institutional-grade capital controls.
Unchained Capital ’s solution enables borrowers to distribute trust across three different parties: themselves, Unchained Capital, and a 3rd-party key agent.
Unchained Capital’s solution is completely cold and does not commingle funds.
Unchained Capital has partnered with Citadel SPV and together the two have implemented protocols for signing transactions, key recovery, and borrower remediation.
Joe Kelly, CEO of Unchained Capital, says that as more traditional financial service providers start to include cryptocurrency in their offerings, their multi-institution custody solution will become the new standard.
“Our custody solution is the foundation not only for safer loans, but many other classes of financial products as well.”