Voltage, a key provider of Bitcoin infrastructure, has unveiled Voltage Credit, a revolving line of credit aimed at transforming the way businesses handle payments using Bitcoin. The new service allows enterprises to execute payments that settle instantly, while completely transacting in U.S. dollars, a significant advancement over conventional payment systems that often face delays.
With Voltage Credit, businesses can access a flexible credit line to facilitate swift payments, clearing in mere seconds. This efficient model allows companies to sidestep the slow processes typically associated with traditional banking systems. When repaying the credit, businesses can do so directly from their bank accounts in dollars, eliminating the necessity of pre-funding accounts or maintaining cryptocurrency reserves on their balance sheets.
The product is strategically positioned to address common pain points that enterprises encounter, such as settlement delays, potential chargeback risks, and the high costs associated with legacy payment systems. By leveraging Bitcoin’s infrastructure, Voltage Credit promises instant payment finality and reduced fees while avoiding mandatory exposure to cryptocurrencies.
This announcement follows Voltage’s successful facilitation of a $1 million payment on the Lightning Network between Secure Digital Markets and Kraken, underscoring the potential for institutional-level settlements. Voltage Credit stands out from traditional Bitcoin lending offerings by operating as a genuine revolving credit facility. Companies can draw only the amount they need, accruing interest solely on the remaining balance. Once repaid, the credit becomes available again, allowing for more flexible financial management.
The product’s credit limits are determined through a revenue-driven underwriting model, which takes into account the volume of transactions processed through Voltage’s infrastructure. This makes it suitable for a diverse range of businesses, from crypto-native firms to traditional enterprises investigating Bitcoin payment solutions. For those operating outside the cryptocurrency realm, the Lightning settlement method not only provides faster and lower-cost transactions compared to some older systems, but it also allows for this efficiency without requiring the handling of cryptocurrency assets.
In contrast, organizations within the digital asset sphere often find traditional financing challenging, as many lending products view Bitcoin revenue as unsupported for underwriting. Furthermore, crypto lending solutions typically necessitate BTC as collateral, which can trigger taxable events and expose companies to the volatility of crypto markets. Voltage Credit, in stark contrast, does not impose origination fees and applies a stable annual percentage rate on the outstanding balances.
Currently, Voltage Credit is being offered to qualified businesses in the United States, presenting a new opportunity for enterprises to enhance their payment infrastructure while simplifying their financial operations.
