Bitcoin peer-to-peer lending platform for SMEs Bitbond has closed €5m in debt financing to fund loans on its platform.
The commitment comes from Obotritia Capital, which will also purchased a stake in the Berlin-based company for an undisclosed sum.
Bitbond’s use of blockchain and bitcoin technologies allows investors on the platform to make loans independent of banks with the company itself also providing automated credit scoring.
It claims to have seen more than $1.4m loaned through the platform with 1,700 loans made.
The company also allows offers an automated investment tool to create diverse portfolios.
Bitbond CEO and founder Radoslav Albrecht commented: “The debt commitment by Obotritia brings Bitbond to the next level in our efforts to provide universal SME financing.
“The next step is to work with partners. Such partners could be online marketplaces who want to add value to their platforms by giving their merchants access to instant cash through Bitbond.”
Last year the company secured a regulatory licence from German financial services supervisor BaFin.
In February Bitbond secured $1.2m in a venture round from investors including German VC Point Nine Capital.
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