Cryptocurrencies

Tether invests in Celsius Network, FinTech valued at $ 120M – Cryptocurrencies

Tether international Limited, the issuer of the stable Tether coin, is participating in a $ 30 million fundraiser organized by Celsius by investing $ 10 million. Fintech Celsius Network Limited (“Celsius”) is carrying out a new round of financing with lead investor Tether International Limited. The synergies between the two companies are enormous, we will explain why. (press release courtesy of SpreadPress / Marien Irzykiewicz).

Celsius, numbers that raise the temperature

Celsius is one of the few blockchain projects that has delivered on its promises. Following an ICO of $ 50 million more than 2 years ago, the company has already made more than $ 8 billion in collateralized loans in cryptocurrencies, with more than 100,000 users, for a total of more $ 700 million in management.

Celsius Network

The platform allows holders of cryptocurrencies a remunerated deposit of their crypto assets, at no cost (management, deposits, withdrawals). Users can also obtain a collateral loan currencies or stablecoins against bitcoin or other cryptocurrencies. Celsius lends cryptocurrencies against collateral to institutional players such as hedge funds, cryptocurrency exchange platforms, or OTC brokers.

In terms of security, Celsius uses Fireblock as a crypto depositary, a benchmark in the sector, also used by French cryptocurrency exchange services Woorton.io and LGO market. The application is built on 4 layers of security to activate according to its use: a password, an access code, 2FA and a ” Fashion hodl »To restrict any transfer for 24 hours.

Users are not forced to keep their private key or update their ledger. There is therefore no risk of losing your cryptocurrencies if your private key is lost or stolen. Everything is recoverable with a reinforced KYC procedure as it works for a bank.

For a few months, users have been able to buy cryptocurrencies directly from the application by bank card. These will instantly start to grow, paying interest every Monday. Soon, it will also be possible to buy by bank transfer.

An API allows exchange platforms or crypto wallets to offer their customers interest on their deposits. A recent partnership with the German fintech Bitwala allows its users a remuneration on their deposits in Bitcoin.

Interest rates are revised weekly. They are currently 4.03% for deposits in BTC (6.4% if paid in CEL tokens) and 8.69% for deposits in USD or GBP (11.9% if paid in CEL tokens). Below is a history of the rates of the main currencies.

Rate sources: Celsians and Thefinancer.org

In terms of taxation, it is often more advantageous to make a currency loan against its crypto collateral rather than sell, making a profit / loss for accounting.

Celsius offers paid deposits on the main cryptocurrencies including the stablecoins of the main world currencies.

Tether with 9 billion dollars of stablecoins issued with a daily volume of almost 20 billion per day, has an adoption issue in the loan lending field. Indeed, in this specific case, the blockchain makes it possible to break the monopoly of the banks and the financial regulation around tokenized assets allows more flexibility on exchanges. New players have access to funding that is not offered by traditional players.

In addition, the tax aspect is not negligible. In many countries, taxation takes place only after conversion of active crypto to fiat currency.

Last week, Celsius also announced the launch of its financing program with the funding platform BnkToTheFuture. This fundraising in action is intended for qualified investors.

Note that the Celsius $ CEL token has a renewed interest in crypto investors, with a capitalization of $ 78M on Coinmarketcap, the token has achieved a performance of + 900% since the end of last year.

Celsius has grown rapidly since its launch in July 2018. The financial services application recently announced more than 124,000 open accounts, with over $ 8.2 billion in loans already made. The company manages more than $ 705 million in assets and has paid more than $ 17 million in interest to its community since its inception.

“The crypto community has only a few big projects and we are delighted with the investment from Tether International as it will help us provide USDt-based services to all of our users”, said Alex Mashinsky, CEO of Celsius.

“We are proud to add Tether International as the first institution to participate in our equity fundraising. “

Celsius and Tether, an obvious convergence

Celsius has already launched services on certain group products Tether, including institutional loans based on the USDt and also the first paid service on Tether Gold, XAUt a token backed by physical gold kept in Switzerland. Celsius users can hold gold represented as a cryptocurrency and receive interest weekly.

Celsius plans to use this $ 30 million investment to grow its community and expand the institutional services it provides around the world.

“We have been working with Celsius Network Limited since 2018. We have found that they have the same passion and commitment to the crypto community as we do. We look forward to advancing our relationship together ”

Giancarlo Devasini.

With a mission to revolutionize financial services, Celsius welcomes the investment of Tether International which has created the first and most stable of the US dollar-backed cryptocurrencies, the USDt. With more than 9 billion tokens issued, the USDt is the third largest cryptocurrency in terms of capitalization.

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“When I met founder Alex Mashinsky during a Fintech & Blockchain roadshow with NapoleonX in Barcelona at the end of 2017, I had the deep intuition that this project would be a success, particularly convinced on the CEL token tokenomics. However, I was very skeptical about 99% of crypto projects. “

Marien Irzykiewicz, co-founder of the start-up Media Spreadpress.fr.

Conclusion at High Temperature

While the companies gravitating around Decentralized Finance have the wind in their sails and are experiencing progress that is reminiscent of the crazy hours of the 2017 ICOs, Celsius Network is no exception to the rule with a progression of 700% in 1 year. Want to discover the platform? Take advantage of $ 10 in BTC offered on your first deposit by downloading and registering on the Application.

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