In a groundbreaking move for institutional finance, Debifi, founded by CEO Max Kei, is leading the charge in providing a noncustodial, peer-to-peer (P2P) bitcoin-backed lending platform tailored specifically for institutions. Established in March 2024 and headquartered in Lugano, Switzerland, Debifi represents a significant evolution in the financial landscape.
Max Kei’s journey into the Bitcoin realm began in 2017, with his significant contributions to Hodl Hodl, a noncustodial P2P trading platform known for its innovative solutions. In 2020, he pioneered Lend at Hodl Hodl, the first noncustodial P2P borrowing and lending product in the Bitcoin ecosystem. This initial venture laid the groundwork for Debifi, which aims to serve institutional clients by darkening the borders between traditional banking and the burgeoning bitcoin economy.
With a reputation forged in multiple bear markets, the team behind Debifi has weathered the storms and come out stronger. According to Kei, “A lot of lenders and borrowers are turning to Debifi because they recognize our team’s extensive experience.” This expertise is not just academic; it’s rooted in real-world applications and resilient practices. Many previous users of Hodl Hodl have migrated to Debifi as they seek reliable and advanced payment structures.
Debifi is more than just a platform; it’s a comprehensive lending solution. Users can access the service via both a website and a mobile app. The mobile app serves a dual purpose as a wallet that securely stores private keys, essential for executing contracts on the platform. Clients can opt for trusted hardware wallets, enhancing security further by using a multisignature (multisig) wallet. With a unique configuration requiring three out of four keys for transaction authorizations, this system ensures both flexibility and security—a distinguishing feature in the financial tech sector.
Loans are overcollateralized, occurring under strict conditions, with the average annual percentage rate (APR) hovering around 10%. Clients can access loans up to $1 million with durations ranging from three to twelve months, and plans to extend up to 24 months are underway. The platform accommodates various currencies, including U.S. dollar stablecoins, euros, and Swiss francs. Additionally, a dispute resolution team is on standby to assist with any issues that arise during the borrowing process.
As Debifi embarks on its official launch, ambitions are soaring. The platform has enlisted Preston Pysh as a strategic advisor, further bolstering its credibility and vision. Kei notes, “Debifi helps institutions integrate effortlessly into the bitcoin-backed lending world.” This comprehensive support ensures clients have the tools needed without the overhead of developing their own systems.
As Debifi prepares to grow its partnerships with innovative companies like Blockstream’s Asset Management division, the landscape of institutional bitcoin lending is set to evolve rapidly. They’ll be positioned as a one-stop shop, connecting clients to the Bitcoin lending ecosystem without the hassle of paying a fee as liquidity providers.
Debifi is poised to set a new standard in the financial sector, blending traditional banking insights with revolutionary bitcoin technology.
