Cryptodrafts and Our FCA Approval
Our recent approval by the FCA, the Financial Conduct Authority in the UK, has made it possible for Baanx to offer more services and grow our portfolio in the fintech market. We have seen tremendous growth in the last year and Baanx has now become one of the first UK-based fintech companies to receive approval from the FCA to carry out secure and regulated cryptoasset activities, including providing our new product, the Cryptodraft. Today we take this opportunity to explain to our community what this new product is and what it means for our users.
Cryptodrafts by Baanx
At Baanx, we have built a next-generation fintech service that creates further use-case for digital assets for our consumers and partners to utilise securely and efficiently. Our registration and approval with the FCA will further support our objective and help us expand our current services by offering secured Cryptodraft “Better than a loan” crypto-swap product to our users.
Our product is intended to provide our customers with the ability to secure a credit line on our cards, backed by their crypto holdings. Users can utilise their card to make purchases without having to liquidate their holdings, offering them more freedom than a fixed-term loan. This allows users to spend past their card account balance, just like a normal card overdraft. The LTV (Loan-To-Value Ratio) will depend on the amount of crypto deposited in the account as well as the number of BXX tokens a user holds.
Initially, only top crypto such as Bitcoin and Ethereum will be allowed for deposit into the collateral account and users will only be able to collateralise one asset at a time. Users will be able to quickly deposit their assets into the collateral account and instantly start spending without needing to further fund the card. Staking even 1 Bitcoin at $50,000 will allow users to secure $5000 USDT at 0% APR and in the near future, holding BXX tokens will allow users to get up to 50% LTV at 0% APR. Currently the two LTV bands offered are 0–10% at 0% MPR and 10.01–35% at 1.99% MPR.
Benefits and Features of Cryptodrafts:
- The first 10% LTV is always interest free!
- Adding further collateral allows you to retain 0% APR.
- A 60 second process to instantly deposit and start spending with the card.
- Easy to use with no paperwork or application processes.
- Instantly withdraw your collateral by settling outstanding balances.
- Allows partial repayments with full flexibility.
- Avoid taxable events as crypto is not liquidated to cover transactions.
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