Bitcoin Journal
21bitcoin Launches Europe’s First Pilot Bitcoin-Backed Lending Product
Austrian Bitcoin platform 21bitcoin has teamed up with VR Financial institution Bayern Mitte eG and Sopra Monetary Expertise GmbH to launch a pioneering European pilot challenge in hopes to develop an institutional-grade Bitcoin-backed credit score product.
The challenge hopes to allow banks and monetary service suppliers to supply regulated lending options which are backed by Bitcoin. By creating a completely compliant ‘white-label product,’ the consortium is positioning Bitcoin as a mainstream, regulated asset class inside the European monetary business, in line with a notice shared with Bitcoin Journal.
“Our purpose is to make Bitcoin accessible and helpful for everybody,” stated Daniel Winklhammer, CEO of 21bitcoin. “Along with our sturdy companions, we’re creating Europe’s first institutional-grade Bitcoin credit score product — safe, clear, and made for the folks of Europe.”
By way of the collaboration, 21bitcoin assumes a central position in buyer expertise, custody, and transaction processing, guaranteeing full compliance with current laws in addition to the upcoming Markets in Crypto-Property Regulation (MiCAR).
In contrast to standard loans, this answer permits clients to unlock liquidity from their digital belongings with out having to promote them, retaining publicity to Bitcoin’s value potential whereas having access to funds.
In different phrases, by means of the product, clients can get money whereas conserving their Bitcoin investments. The mortgage system will comply with all European guidelines and laws, making it secure and safe.
Banks and monetary providers will even be capable to provide it as a white-label answer below their very own model.
The corporate made it clear final yr that it desires to grow to be the primary bitcoin-only firm in Europe to acquire a MiCAR (Markets in Crypto-Property Regulation) license, permitting it to function throughout the EU below unified crypto laws.
Backed by sturdy 2023 progress and a strategic partnership with Volksbank Raiffeisenbank Bayern Mitte, 21bitcoin is enhancing transparency, consumer belief, and innovation.
Conventional finance getting into Bitcoin
Nico Hirsch, Chairman of the Works Council at VR Financial institution Bayern Mitte, emphasised the importance of this collaboration for European banking: “This partnership demonstrates how conventional monetary establishments can innovate responsibly, integrating rising digital belongings into their service choices whereas sustaining full regulatory compliance.”
Sopra Monetary Expertise GmbH, a key companion within the pilot, will contribute its technical experience in monetary know-how to assist product improvement and integration with financial institution methods.
Because the pilot progresses and develops, 21bitcoin will proceed refining the product, specializing in safety, transparency, and buyer accessibility.
This submit 21bitcoin Launches Europe’s First Pilot Bitcoin-Backed Lending Product first appeared on Bitcoin Journal and is written by Micah Zimmerman.
