Introduction to Fulcrum Lending
A new platform for crypto-backed lending has launched in Switzerland, aiming to revolutionize the way investors interact with their digital assets. Known as Fulcrum Lending, the initiative is a branch of Fulcrum, a firm regulated by the Swiss Financial Market Supervisory Authority (FINMA). This new lending service enables individuals and businesses to earn interest on their idle cryptocurrencies while also providing the option to access credit using their crypto portfolios as collateral.
Platform Features and Offerings
In a detailed announcement, the company revealed that the platform will support a range of well-known cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), as well as several stablecoins like Tether (USDT) and USD Coin (USDC). Following a rigorous six-month period of alpha and beta testing, Fulcrum is now ready to offer these financial products, touting the platform as fully insured and compliant with existing regulations.
Mission and Vision
Matthew Curtis, the founder and CEO of Fulcrum Lending, expressed the company’s mission to empower its user base by offering competitive financial alternatives.
“We are committed to providing innovative financial solutions, and our platform stands out by delivering high-yield options that serve as a substitute for conventional savings accounts, complete with the assurance of full insurance coverage,”
Curtis stated.
Competitive Returns
Fulcrum’s lending initiative promises significant returns, offering rates of up to 14% APR on popular stablecoins, and up to 13% APR for coins like Solana (SOL) and Binance Coin (BNB), while enthusiasts of Bitcoin and Ethereum can expect rates reaching up to 12%. Additionally, the platform allows crypto holders the option to borrow USDT at an annual rate of 16%.
Security and Strategy
In a strategic move, Fulcrum has partnered with Lloyd’s of London to secure complete insurance for users’ funds, with Fireworks acting as the custodian of the customer assets. Unlike many crypto lending services that suffered losses during the 2022 market downturn, Fulcrum asserts a cautious approach by focusing on generating returns solely from lending activities and over-collateralization strategies. This approach aims to create a safer environment for investors amid the volatile nature of cryptocurrency trading, providing greater financial control and flexibility for users.
