DrawBridge provides Bitcoin-backed loans without margin calls, allowing users to access liquidity while retaining their cryptocurrency holdings. This model mitigates the risk of forced liquidation during market volatility, offering a stable financing option for Bitcoin investors.
Funding
$5.3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Bitcoin holders often need access to fiat currency without selling their Bitcoin, but traditional lending platforms may trigger margin calls and forced liquidations during market downturns. This creates a risk of losing Bitcoin holdings due to price volatility.
Solution
DrawBridge offers Bitcoin-backed loans that eliminate margin calls, allowing users to access liquidity while retaining ownership of their Bitcoin. The platform provides a stable financing option by using a fixed loan-to-value (LTV) ratio and predetermined repayment schedules, mitigating the risk of forced liquidation during market volatility. Borrowers can use their Bitcoin as collateral to secure loans without the need to sell their assets, providing a flexible solution for managing their finances.
Target Audience
The primary target audience consists of Bitcoin investors and holders who need access to fiat currency for various purposes without selling their Bitcoin assets.
Features
- Fixed loan-to-value (LTV) ratios to protect against market fluctuations
- Predetermined repayment schedules for predictable financial planning
- No margin calls, preventing forced liquidation of Bitcoin collateral
- Secure storage of Bitcoin collateral using multi-signature wallets
- Automated loan origination and management platform