ABIC Corporation of Japan has said that it has started offering a first-of-its-kind service in Japan in which it will be offering loans backed by cryptocurrency. The loans will be provided in Japanese yen by keeping digital currency as collateral. It is certainly an interesting experiment started by ABIC and if succeeds, it could change the course of loans and banking worldwide.
ABIC To Offer Real Estate & Commercial Loans
It is for the first time that any such service has been introduced in both the traditional and crypto markets of Japan and naturally, the company is excited to launch its Bitcoin (BTC-USD) loan services. ABIC Corporation is expected to garner more profit especially if they target the individuals. The renowned banking giant from Japan known for offering multiple loan products will offer commercial as well as real estate loans. In Japan, the sale of cryptocurrencies by an individual is categorized under miscellaneous income and hence a person has to pay progressive taxation for it which can be as high as 55%.
The company, founded in 1973 with its headquarter in Tokyo, has said that in the United States and Europe, there has been a rise in the number of services providing ICOs and loans with digital currency as collateral. The company further says that loans secured by Bitcoin is a type of service in which the customers can use BTC as collateral to receive loans. However, in this case, the customers will receive the loans only in Japanese Yen.
Loans Available To Both Individuals & Businesses
ABIC has said that this type of virtual currency-secured loans provides customers an option to access funds without actually having to sell their crypto assets. The company has urged the cryptocurrency owners to choose crypto secured loans for fulfilling their wide range of requirements including tax payments and purchasing new virtual currencies. According to the corporation, they will provide loans for both individuals and businesses in the amounts between 2 million and 1 billion Yen. The annual interest will range from 2.98% to 15.0%.