Could non-crypto companies take a stablecoin loan?

I’m curious as stablecoins likely will become more popular over time if any of you have heard of non-crypto / web2 startups taking loans in the form of stablecoins?

Do you see or expect this to be a trend or are we still a long long way from that becoming commonplace?

Would investors or board members block such a move?

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5 thoughts on “Could non-crypto companies take a stablecoin loan?”

  1. Would it make sense though? What would there collateral be?
    Crypto whales hodl BTC + ETH and post that as collateral so they can play whale games. The most degenerate lending allows 80% LTV. So the company would have to post collateral to take a loan on 80% and risk liquidation? The only crypto they might use as collateral is stables, so what’s the point in paying interest on funds you already own?

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  2. I think it really depends on the stablecoin, a European traditional company would feel more comfortable borrowing EEUR (which they know is backed by actual fiat and audited by a top firm) than any algorithmic stablecoin (considering the precedent UST has set).

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  3. The problem (well one of) is ‘web2’ companies need to convert it to fiat and the fees + interest makes no sense. They can just go to the bank for better terms.

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  4. There is a bunch of protocols connecting real life assets with stablecoins. Think the likes of maple finance, goldfinch et al.
    Essentially they provides services whereby normal companies can borrow from DeFi users (usually in stablecoins) and put up real life assets as collateral.

    DAOs such as Maker are also pushing for this as they have ample liquidity but cannot generate decent yields in the DEFi space atm. So they lend to real-life borrowers in order to gain better returns and diversify their lending profile.

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