Acacia partners with Unchained and Build to launch secure Bitcoin-backed commercial loans and mainstream crypto finance integration.
Acacia Research Corporation, a Nasdaq-listed company under the ticker ACTG, announced a major partnership. The company joined forces with Unchained Capital and Build Asset Management to create a Bitcoin-backed commercial loan strategy. The cooperation is expected to merge innovation and security, as well as open the door to new financial possibilities.
Acacia, Unchained, Build Launch Bitcoin-Backed Loan Strategy
Acacia purchases and undertakes businesses in the industrial, energy, and technology sectors. Unchained Capital is a Bitcoin financial services platform that was founded in 2016. It holds more than 12 billion dollars worth of Bitcoin assets and provides 1 billion dollars worth of loans without rehypothecation. Build Asset Management is a registered investment adviser that specializes in Bitcoin-centered credit strategies. Collectively, they possess expertise in finance, digital assets, and risk management.
Secondly, the strategy will be aimed at purchasing commercial whole loans. They are lending facilities opened by one of the Unchained affiliates and secured by Bitcoin. When generated, they will be sold to an Acacia wholly owned subsidiary. Build Asset Management will be dealing with administration and will provide convenient operations and adherence to regulations. This form enables every partner to concentrate on its strengths and minimize risks in operations.
In addition, the loans possess attractive financial terms. They are accompanied by competitive interest rates and low loan-to-value (LTV) ratios. A low LTV indicates that the size of the loan is small relative to the value of the Bitcoin that serves as collateral. This gives an added protection to Acacia since the security will have a much higher value than the loan. Such characteristics make the loans appealing in terms of risk adjusted returns.
Related Reading: Australia Approves First Bitcoin-Backed Home Loan After Court Win
Acacia Taps Bitcoin for Secure, Regulated Lending Model
Martin McNulty, Jr., CEO of Acacia stated he is positive about the collaboration. He said that they are working with Unchained and Build. Bitcoin is safe collateral and these loans enable the holders of bitcoin to tap the dollar assets and maintain their Bitcoin.” This model allows the Bitcoin owners to retain the long-term investment but at the same time satisfy the liquidity requirements in the short-term.
Additionally, the initiative showcases the growing role of Bitcoin as a trusted form of collateral. Unchained Capital is a collaborative custody company with a model that enables the clients to retain control of their own keys, eliminating the counterparty risk. This is an important upgrade to most of the traditional and crypto lending platforms that demand the transfer of complete custody. The previous experience of Build, which launched a Bitcoin-centered private credit fund in July 2023, comprises tested knowledge of the project.
Moreover, the strategy is a part of the more comprehensive trend to incorporate Bitcoin into the mainstream financial products. A collaboration with Bitcoin in terms of security and structured lending has the potential to generate both institutional and retail interest. In case it succeeds, it could be an incentive to other companies to consider other solutions using Bitcoin.
To sum up, Acacia partnering with Unchained Capital and Build Asset Management will give it a leading position in crypto-finance innovation. The strategy will provide a safe, regulated and lucrative approach to using Bitcoin in mainstream lending. The program could establish a precedent in the application of digital assets in commercial finance, opening a new era of collateralized lending as it grows.
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