It’s all relative. There’s a huge crisis in the world of cryptocurrencies, according to most mainstream media reports. But the retrenchment of Bitcoin to an eight-month low, a crash in a minor crypto, and lots of talk about a crisis of confidence in tokens of value of various sorts all come to… something well short of a crisis.
If monetary confidence is about network size, confidence and trust, alternative-finance systems are here to stay. Much of the criticism aimed at systemic weaknesses in cryptoland smacks of desperation.
BVNK, a crypto payments fintech, has secured $40m in Series-A funding in a round led by Tiger Global.
The fintech, which is pronounced (B-V-N-K) aims to to bring together fiat currencies from ‘traditional finance’ and crypto technology.
BVNK wants to use blockchain technology and cryptocurrencies to reshape core banking systems to make business payments and banking more efficient, creating a global payment system akin to Mastercard or Visa.
“Rapid adoption of cryptocurrencies by global businesses adds complexity to treasury management, banking, and payments. BVNK’s platform helps companies seamlessly switch between fiat and crypto. We believe BVNK, with its focus on product differentiation and compliance, is poised to be a market leader, and we’re excited to partner with Jesse and the team,” said Alex Cook, Partner, Tiger Global.
The new cash will be used to fuel BVNK’s launch into new markets, including the USA, accelerate its acquisition of regulatory licences, and support the expansion of products.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.