Provision of collateral
Clients provide BTC they hold as collateral. The method of provision is set out in each individual agreement.
CRYPTO
COLLATERAL
LOAN
Available
Stablecoin loans secured by crypto-assets
Crypto-Asset
Collateral Loan
SPD Japan provides a service under which clients provide crypto-assets (BTC) they hold as collateral and SPD Japan lends stablecoins to them. The type of stablecoin lent, the loan-to-value ratio, the loan period, rates and fees, and other conditions are set out in each individual agreement. Details are explained individually after an NDA has been signed.
No applications are accepted, and no transfers of crypto-assets are received, on this website. SPD Japan guides each client individually through the procedures, which involve signing an NDA, identity verification, and concluding an agreement.
HOW IT WORKS
How the Service Works
Clients provide BTC they hold as collateral, and SPD Japan lends stablecoins. After repayment has been completed, the collateral is returned. Specific conditions are set out in each individual agreement.
Stablecoin loan
SPD Japan lends stablecoins. The type of stablecoin, the loan amount, and other conditions are set out in each individual agreement.
Repayment and return of collateral
After repayment has been completed in accordance with the agreement, the collateral is returned. The loan period, the repayment method, and rates and fees are set out in each individual agreement.
This service runs in the opposite direction to Digital Asset Lending (a service under which SPD Japan borrows crypto-assets from clients).
ELIGIBLE ASSETS
Eligible Assets and Main Conditions
The crypto-asset accepted as collateral is BTC. Other conditions are set out in each individual agreement.
- Crypto-asset accepted as collateral
- BTC
- Stablecoin lent
- Set out in each individual agreement
- Loan amount (minimum and maximum)
- Set out in each individual agreement
- Loan period and repayment method
- Set out in each individual agreement
- Eligible clients
- Set out in each individual agreement
- Method of transfer
- Set out in each individual agreement
COLLATERAL
Loan-to-Value Ratio, Additional Collateral, and Disposal of Collateral
Crypto-asset prices fluctuate significantly. The following matters relating to collateral are set out in each individual agreement.
-
01
Loan-to-value ratio
The ratio of the loan amount to the assessed value of the collateral. The specific ratio is set out in each individual agreement.
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02
Valuation of collateral
The prices and the method used to value the collateral are set out in each individual agreement.
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03
Additional collateral
The handling of additional collateral and related matters if the value of the collateral falls is set out in each individual agreement.
-
04
Disposal of collateral
The conditions and the method for disposing of collateral are set out in each individual agreement.
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05
Custody and return of collateral
The method of holding the collateral and the method of returning it after repayment are set out in each individual agreement.
FEES
Rates and Fees
Rates, fees, and other charges are set out in each individual agreement.
- Rate
- Set out in each individual agreement
- Fees
- Set out in each individual agreement
- Early repayment
- Set out in each individual agreement
- Other charges
- Set out in each individual agreement
ONBOARDING
Onboarding Process
- 01Inquiry
- 02Signing of an NDA
- 03Disclosure of due diligence materials
- 04Identity verification, customer attribute checks (SPD Japan's internal criteria), and AML/CFT
- 05Review of product terms and the agreement
- 06Internal approval by both parties
- 07After the agreement is concluded: wallet registration and a small test transfer
- 08Provision of collateral and start of the loan after the start conditions are met
The required procedures and the time needed vary depending on the client's attributes, the legal structure, due diligence, the agreement, and the status of approvals by both parties.
RISKS
Main Risks
Before using the service, please review the following risks carefully.
Price fluctuations and disposal of collateral
Crypto-asset prices fluctuate significantly. If the value of the collateral falls, the provision of additional collateral, partial repayment, or the disposal of collateral may be required under the individual agreement. Depending on the agreement, if the proceeds from disposing of the collateral are less than the amount to be repaid, repayment of the remaining balance may be required.
Risks relating to stablecoins
The price of a stablecoin may deviate from the fiat currency it is designed to track. Stablecoins may also be affected by the financial condition of the issuer or by a suspension of conversion or transfers.
Risks relating to the custody of collateral
The method of holding the collateral is set out in each individual agreement. Depending on that method, the return of the collateral may be delayed, or all or part of it may not be returned, due to a deterioration in the financial condition or the insolvency of SPD Japan or a custodian, unauthorized access, or other causes.
Blockchain and system risks
Network congestion or outages, hard forks, system failures, or other causes may prevent transfers, the valuation of collateral, or the disposal of collateral from being carried out as scheduled.
Liquidity risk
If market liquidity declines, the collateral may not be disposed of at the expected price.
Legal and tax risks
Changes in laws, regulations, or tax rules may result in changes to conditions, suspension of new loans, or termination of the service. Clients should confirm the tax treatment themselves with a licensed tax accountant or other professional.
This service does not guarantee the value or the return of collateral.
FAQ
Frequently Asked Questions
-
Q1
How does this differ from Digital Asset Lending?
Digital Asset Lending is a service under which SPD Japan borrows crypto-assets from clients. In this service, clients provide crypto-assets as collateral and SPD Japan lends stablecoins, so the direction of lending is reversed.
-
Q2
Which crypto-assets can be used as collateral?
BTC.
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Q3
How is the collateral held?
The method of holding the collateral is set out in each individual agreement.
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Q4
What happens if crypto-asset prices fall?
The handling of the loan-to-value ratio, additional collateral, and the disposal of collateral is set out in each individual agreement. For the risks, see “Main Risks.”
-
Q5
Can a loan be repaid early?
Whether early repayment is possible, and on what conditions, is set out in each individual agreement.
-
Q6
Can I apply through the website?
No applications are accepted, and no transfers of crypto-assets are received, on this website. After an inquiry, SPD Japan guides each client individually through the procedures, which involve signing an NDA, identity verification, and concluding an agreement.
IMPORTANT INFORMATION
Important Information
This page is intended to provide information about stablecoin loans secured by crypto-assets. No applications are accepted, and no transfers of crypto-assets are received, on this website. SPD Japan guides each client individually through the procedures, which involve signing an NDA, identity verification, and concluding an agreement.
The type of stablecoin lent, the loan-to-value ratio, additional collateral and the disposal of collateral, the methods of valuing and holding collateral, the loan period and repayment method, rates and fees, the minimum and maximum loan amounts, eligible clients, and other conditions are set out in each individual agreement. These conditions may be changed or discontinued depending on the results of SPD Japan's internal approval.
Price fluctuations of crypto-assets may result in all or part of the collateral being disposed of. This service does not guarantee the value or the return of collateral.
CONTACT
Request Materials / Consultation
SPD Japan accepts consultations regarding an overview of the Crypto-Asset Collateral Loan, NDAs, and due diligence materials.