Atomic Loans announced that it has obtained a new capital injection to develop a decentralized loan agreement for Bitcoin.
Image source: Atomic Loans
Non-custodial and Bitcoin-backed loan services are coming soon
Atomic Loans is a startup focused on developing peer-to-peer bitcoin-backed loans. It has just announced that it has raised a seed round of $ 2.45 million, led by Initialized Capital. Brett Gibson, a partner at Initialized Capital, said the funds will be used to continue research and development to build the first Bitcoin-based decentralized financial solution.
"Despite the impressive growth of DeFi so far, there are few or no projects running on the Bitcoin network. This leaves DeFi missing the largest and most valuable crypto assets. Atomic Loans is using their Deep expertise in coin scripts and atomic exchanges to create useful DeFi products that can run directly on the Bitcoin blockchain without the need for complex synthesis on other blockchains. "
Since Ethereum is leading the DeFi market, Atomic Loans hopes to provide Bitcoin holders with the ability to leverage and mortgage their holdings in a non-custodial manner. The idea is to create a "two-way market" for BTC-backed loan services.
Users will be able to lock their bitcoin in non-custodial escrow services, and use Ethereum-based stablecoins (such as DAI) to trade or purchase products and services without the risk of taxable activities or loss of bitcoin Exposure.
Min Teo, a partner at ConsenSys Labs, said:
"Bitcoin will become a core component of DeFi activities, and DeFi activities are rapidly growing and expanding in today's Ethereum. The vision of creating a parallel financial system that is license-free and open to everyone is a vision that goes beyond blockchain and community , We are proud to continue to use Atomic Loans, they are at the forefront of achieving this vision in a way that minimizes trust. "
Atomic Loans co-founder and CTO Matthew Black said,
"What we have been doing is to score each potential user's attention to escrow risk, ranging from 1 to 5. The results show that some people think that escrow is not so important, but really want early adopters of Atomic Usually give 4 or 5 points. "
According to Black, the services provided by Atomic Loans will be attractive to miners who need cash to pay their monthly operating expenses but do not want to sell BTC. Traditionally, mining unions go to loan services to borrow cash, waiting for these companies to approve their requests and hand out loans manually.
Atomic Loans, a Toronto-based company, was established in January 2019 and will launch its agreement in the second quarter of 2020. Its mission is to create a decentralized financial infrastructure for Bitcoin from scratch, and then expand this flagship The purpose of cryptocurrency. Previously raised $ 200,000 in pre-seed financing from ConsenSys. ConsenSys also participated in this latest round of financing with Morgan Creek Digital and enterprise blockchain startup Bison Trails founders Joe Lallouz and Aaron Henshaw.