Bitcoin Can Be Used to Invest in Asset-Backed Securities for the First Time

In a world first, institutional and individual investors can now invest in debt securities using bitcoin after an update to Racefields’ RCX debt trading platform. The roll-out of this new service will begin immediately.

One of the largest criticisms of bitcoin is that it is difficult to spend. Outside of retail environments, bitcoin owners haven’t been given much opportunity to use this new currency in the real world. With the launch of RCX’s new feature, bitcoin users can now participate in the refinancing of asset-backed securities owned by professional lenders – a domain normally reserved for traditional cash buyers.

Recently, the price of bitcoin surged to a record-high of $7,598. Despite a short-lived downturn, the price continues its upward trend and RCX now gives bitcoin users the opportunity to make larger investments.

Bitcoin owners on the platform will bid on investment opportunities just as a cash user would. Should their bid be accepted by the vendor, Racefields will process the transaction through a partnership with a regulated bitcoin exchange based in the Netherlands.

Bitcoin millionaire Tim Draper believes cryptocurrencies will make fiat money irrelevant within five years. Draper, who has led high-profile investments in Twitter, Skype and Tesla, is now heavily investing in cryptocurrencies. In 2014, he purchased 30,000 bitcoins which were worth $20 million at the time. In today’s market, they are valued at $214 million which is testament to increasing public awareness and growing demand for bitcoin.

Including bitcoin on RCX makes perfect sense to us considering the huge amount of capital invested in the currency and the lack of serious investment opportunities available to holders of the coins. In co-operation with our exchange partner, RCX is now designed to treat bitcoin like any other currency. We believe that there are bitcoin users who want to build a portfolio of secured debt investments using this new currency and RCX provides them with the opportunity to do so,” says David Gammond, founder and chairman of Racefields.

He continues, “We do not believe that bitcoin is a bubble. Like any other new asset class there will be volatility in the value until the currency matures and becomes generally accepted. Like Tim Draper, we have great confidence in bitcoin and are fully committed to its development into a mainstream asset class.

Since 2015, Racefields has been providing corporate finance advice to businesses that are seeking equity investment. In September 2017, the company launched the RCX debt trading platform which was the first service of its kind. It provides an intuitive space for professional lenders to refinance their asset-backed securities with investment from both institutional and individual investors.

Within a fortnight of launching, nearly £6 million worth of bridging loan debt was listed for sale on the platform by professional lenders in the UK. That figure now stands at over £7.5 million, circa £2 million of which is currently being purchased by RCX investors.

Investor interest in RCX has been high since day one with large American funds and FTSE250 companies joining the platform early on. Racefields continues to seek professional lenders and investors to join RCX’s growing userbase.

Author: Dylan Jones

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