Helio Lending

Safely/securely use crypto as security to borrow USD or stablecoin


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Helio Lending: Fast Facts



Enormously Problematic

If you own cryptocurrency, then the traditional way for you to access the value of your coin is to sell it.

But that's not as easy as, say, getting cash out of an ATM.

By the same token, cryptocurrency is not like a house, or a share portfolio, that you can use as security to get a loan from a bank.

But most cryptocurrency owners think the price of their coin will rise, and rise, and rise. So they do not want to sell their assets for fear of losing out on future value.

This often strongly held position has given rise to the crypto term "HODL," or "hold on for dear life" ― a play on the term "hold” in the tradition of "buy, sell, or hold."

There are very few lenders who accept cryptocurrency as security for a loan. Most, if not all, of those lenders who do accept crypto as security have the right to make margin calls if the price falls ― and to sell the borrower's coin if need be.

Incredibly Unforgiving

Here's an example of how a margin call works — which also shows why potential borrowers using crypto as security don’t like them:

An investor borrows $7,000 from a bank to put with $3,000 of their own money to buy 10,000 of XYZ Corporation's shares at $1.00 a share.

The loan to value ratio (LVR) is 70% ― that is the bank has lent the investor 70% of the value of the shares bought with the loan.

The security for the loan is the shares the investor buys with the loan.

If the share prices falls from $1.00 to 60 cents (before the investor has paid off any of the principal of the loan), then the value of the shares is less than the amount of the loan.

In that case, the bank can require the investor to pay off enough of the loan to bring the amount of the loan below 70% of the value of the shares.

To do that, the investor may have to sell some of the shares at a loss.

It's time for a better way.

The Solution Cryptocurrency Demands

Hello Lending solves this by:

Key Features

If you own any of the approved types of cryptocurrency, then you can apply to Helio Lending to use your coin as security for a safe and secure loan in US dollars or stablecoin.

You can spend the money — you still own your cryptocurrency.

Example: A crypto owner wants to buy a property for business purposes. But:

  • They don’t want to sell their crypto
  • Their bank won't accept crypto as security for a loan
  • They have no other assets to use as security for the loan

Here’s how they get the property:

  • They use their crypto asset as security to get a loan from Helio Lending to buy a property mortgage-free
  • And then they give the bank a first ranking mortgage over their new property to get a loan that they use to pay off their loan from Helio. 

(Of course, they don't have to get a bank loan as described above. They can just keep the Helio Lending loan in place.)

Traction & Accomplishments

Developed IT for our website

Received a $90,000 research and development grant from the Australian Government to fund IT development

Website launched, late 2019

After much discussion with potential fund providers and potential borrowers, we settled on our margin-call free loan structure, with its innovative put and call options

Partnerships

Meet The Team

John is supported by these active shareholders:

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