Australian Lending Startup Loda Gets $15M to Further Crypto Collateralization Efforts

Australian Lending Startup Loda Gets $15M to Further Crypto Collateralization Efforts

Australian startup Loda, a crypto-collateralized lending platform, has completed its first liquidity pool with the help of some decentralized finance heavyweight investors.

According to a press release on Friday, Loda attracted over 15 investors who poured $15 million into the lender’s first of three completed institutional liquidity pools.

The two remaining pools, which are currently live, will be completed once demand calls for it, Dion Dalton-Bridges, CEO and founder of Loda, told CoinDesk via Telegram on Friday.

Participation came from the likes of Framework Ventures, Spartan Capital, One Block, Mechanism Capital, Liquefy Labs, Apollo Capital, Maven 11, Ledger Prime, and Cluster Capital.

Signum Capital, X21, Flow Ventures, Autonomy Capital, KardiaChain, as well as angel investor Georgi Georgiev also participated.

Loda’s first iteration (V1) is one of the first of its kind in the country allowing users “one of the only ways” to borrow Australian dollars against crypto, said Dalton-Bridges.

The platform allows users to park their crypto assets on the platform in exchange for dollars as a means of accessing immediate capital.

While banks don’t accept crypto as collateral to borrow money for a home, car, boat, or holiday, Loda is attempting to provide its users the means to do just that.

“An example of a traditional collateralized loan is when someone uses a house to borrow more money. All that is happening here is we are introducing a new form of collateral, which is the crypto itself,” said Dalton-Bridges.

Those that believe in cryptocurrency as a long-term investment may borrow the cash in the short-term and still benefit, as the person who takes the loan “still captures all the potential upside” of an appreciating cryptos price.

“This is appealing to crypto holders who want access to cash but don’t want to sell,” said Dalton-Bridges. “The benefits of borrowing against crypto are namely that you are not selling your crypto but are still able to access cash in the here and now, and at low-interest rates.”

The founder estimates a flat rate across all loans will be placed somewhere in the 5% range once the platform goes live sometime in August.

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