Ukrainian pawnshop Skarbnytsya, founded in November 1992, launched a loan service secured by cryptocurrency. They have more than 300 branches and are planning to provide loans based on the type, amount and price of the cryptocurrency.

According to Skarbnytsya’s website, the company has millions of customers and 1,200 employees, with the highest standards in the non-bank lending market, and claims to be “the first and largest non-state [network of] pawnshops in Kiev and Ukraine.”

Market manager, Ivan Ipatov said,

“The implementation of this project is due to the rapid development of crypto and blockchain in the world. Our clients will be able to use the money and, at the same time, receive income from the growth of cryptocurrencies in the future.”

Skarbnytsya emphasizes that loans protected by cryptocurrencies are available “as simple as possible…without undue formalities.”

The cryptocurrency owner can receive a loan at the hryvnia (UAH) in Ukraine for up to 31 days. When the loan is repaid, it seems that the full amount of the cryptocurrency transferred as collateral is fully refunded to the borrower.

It would probably be the world’s first attempt to lend a loan with a cryptocurrency as collateral. However, in this case price fluctuation of the cryptocurrency seems to be a big problem.

Source :- news.bitcoin.com