How Crypto-Backed Loans Work
Collateral, custody and the difference between a personal and a commercial loan.
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- How Crypto-Backed Loans WorkA crypto-backed loan allows you to borrow Australian Dollars by using your cryptocurrency as collateral. Your crypto assets remain yours throughout the loan term—you're simply using them as security, similar to how a traditional mortgage uses property as collateral. With Vield, only BTC and ETH can be used as collateral.
- How Vield Secures Your AssetsYour crypto is held in an air-gapped cold storage wallet provided by Zodia, a professional custody solution. Each Vield customer has a unique wallet address where their Bitcoin or Ethereum is stored for the duration of their loan.
- Personal vs Commercial LoansVield offers two types of crypto-backed loans: Personal Loans for individual use and Commercial Loans for business purposes. While both use cryptocurrency as collateral, they have different eligibility requirements, maximum amounts, and permitted uses.