Integrating Crypto in the Financial Mainstream

Money makes money. This has been true for millennia … until now.

With traditional interest rates close to or even below zero, the whole concept of earning interest on deposits has been turned on its head, making it harder than ever for asset holders to generate returns. That’s about to change, thanks to YouHodler, which combines the growth of crypto assets alongside the structures of traditional financial systems so asset holders can start to make decent returns again.

YouHodler is a crypto asset-based “banking” platform that provides an alternative solution to traditional banking. Its platform provides consumers with easy-to-use exponential growth cryptocurrency products, as well as flexibility in managing crypto/fiat financial services.

YouHodler builds bridges between the fiat and crypto worlds, using crypto assets intelligently as either collateral for fiat lending or as lending assets in their own right.

YouHodler is not a replacement for traditional finance, nor is it a scheme for pushing its own native tokens. The business model is simple: offering clients services based on the seamless conversion between fiat and crypto assets. This allows its customers to spend fiat, not their crypto assets.

These services enable YouHodler’s customers to:

• use their crypto as collateral to get instant cash and cryptocurrency loans at the highest loan-to-value ratio (up to 90%)
• enjoy universal conversion among all crypto, fiat and stablecoins
• earn up to 12% APR plus compounding interest by depositing crypto in YouHodler Savings Accounts, paid out weekly

Customer security is key. Customer assets are securely held in custody via Ledger Vault, with $150 million of pooled financial crime insurance. Other partners include Elliptic, Acuant and Ondato, all providing extra layers of compliance and anti-money laundering security.

Based in Switzerland and the EU, YouHodler is an active member of the Financial Commission’s Blockchain Association and the Crypto Valley Association. Its customers are further protected by the independent Financial Commission’s efficient dispute resolution process.

YouHodler’s mission is to support the coexistence of crypto and fiat via a sophisticated range of financial products that meet international standards. Crypto assets are finding their natural place in the wider financial infrastructure as return-generating assets, means of exchange and, increasingly, collateral. YouHodler delivers returns from the integration of crypto and traditional financial services.

Q&A With Ilya Volkov, CEO of YouHodler

Q: How is your company different from other crypto lenders in the market?

A: We are different because we do not believe that crypto is a revolution; rather, it is just a logical evolutionary step in the development of the wider financial industry. In our mind, crypto and fiat should work together and that's why we are building bridges between crypto and fiat. We see our mission as to properly integrate cryptocurrency into the financial system so that everyone can use the benefits of crypto as an integral part of personal financial management.

Q: What is the challenge for this integration between crypto and fiat?

A: The biggest challenge is not about engineering, development, liquidity or even fundraising. The biggest challenge still is regulation, because the financial market operates globally but they are regulated locally. So we have to dig deep in every country where we are promoting our service. That's why we make so much effort to ensure that everything we do is fully legitimate and fully in accordance with local requirements, including with all types of [know your customer] and [anti-money laundering] requirements. This is another difference between us and other crypto lenders.

Q: Is this why you are based in Switzerland?

A: Yes, we are structured as a financial intermediary here and have our pawnbroker license here. We are also affiliated with the Financial Services Ombudsman’s office and we are working on our Tier 1 licenses here as well. Switzerland has a smart approach to regulation. They are not trying to reinvent the wheel … they're trying to use principles from traditional regulation, and they're trying to apply them to crypto. There are still some nuances, and they need to fully implement the new Blockchain Act. But in general everything is very smart, even wise, I would say. There is also a good infrastructure environment here.

Q: How do you combine crypto with traditional finance?

A: There are no credit checks or long approval times for loans. We have high-yield crypto-savings accounts alongside safe and secure asset storage. We are real people behind the platform and are held accountable for our customers’ funds. We also have additional investment tools to help people multiply their funds as opposed to just passive HODLing.