BCB Group introduces Yield product in the EU, while the supervisory authorities in the US

BCB Group introduces Yield product in the EU, while the supervisory authorities in the US

The crypto payment and trading company BCB Group presented its dual fiat and crypto return product in the EU on Monday, one day after Blockfi was forced to pay $ 100 million in fines to the supervisory authorities in the USA.

The company said that his product BCB Yield offers customers "several options" according to a press release on Monday to achieve a return on their credit via his BCB Securities Fund. According to BCB, the fund is a "first" investment vehicle that offers investment options in a number of currencies for up to 2 % annual percentage return if it is on euro.

Credit products within crypto hope to fill the gap that was left by low interest rates in traditional finance, which were pressed by centralized institutions under or close to zero to boost excessive inflation. As an alternative, crypto loan allocation tries to attract investors in search of higher returns.

"Corporate finances parked in cash or fundamental equipment is poorly treated in most currencies," said Oliver Landsberg-Sadie in an interview with Blockworks on Thursday. "Refurbements on the cryptom market between Spot and futures continue to offer profit options that only experienced dealers can monetize."

He said that the product of his company offers a "market-risk-neutral return" that is based on arbitrage strategies that are carried out by experienced dealers, in a way that also tries to address the credit risk of the counterparty that is well established in the traditional financial world, but was not understood or not used in general.

"This is the only risk -neutral trade that can exceed true inflation in most currencies and arouses great interest among those who are stuck in the area of ​​negative interest rates."

Customers of the fund can choose whether they want to give either a Fiat or crypto that are accompanied by corresponding debt bonds over a period of 30, 60 or 90 days, the company said. The returns can be up to 8 % if they are on US dollars.

The investment vehicle offers several strategies for EUR, GBP, USD, CHF and KRYPTO Product page . In its publication, BCB said that his latest product was the "first step" in a wider range of return options that will come onto the market this year, with a focus on solutions that use decentralized financial protocols and products.

lending to private customers versus institutional loans in the EU, North America

The BCB's credit product is introduced at a time when the US supervisory authorities urge to surveillance both the crypto and accompanying credit products.

At the beginning of this week, Blockfi paid $ 50 million to the Securities and Exchange Commission and a further $ 50 million to state supervisory authorities due to allegations that it did not register its high-interest securities that private customers are offered.

Decisions about how crypto loans are to be regulated across the border in Canada are somewhat better because they fall within the area of ​​responsibility of the provinces of the provinces of the country, although the regulatory requirements for such products can only be achieved with patience and time according to a local stock exchange.

But when it comes to the EU, Chris Aruliah, Chief Product Officer from BCB, told Blockworks that the company's product differs significantly from Blockfi's offer and uses a structure that is known as an Open-Ended Investment Scheme and is subject to the Luxembourg Reduction Act.

"This law regulates how the fund works and how the fund is structured," said Aruliah. "According to the conditions of the fund, the fund manager can use a number of agreed strategies to generate a return for investors."

"The fund does not take part in the credit market for private customers ... The type of this product differs significantly from Blockfi and cannot really be compared," he said.

The strategy used by the BCB fund is based on allocations that are awarded to “recognized” institutional companies within the crypto industry, added Aruliaah.

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The contribution BCB Group brings Yield product in the EU in the middle of an official examination in the USA and is not a financial advice.