Austin, Texas, is witnessing a significant development in the financial technology landscape as Voltage, a leader in Bitcoin infrastructure, has unveiled Voltage Credit, marking the launch of the industry’s very first programmatic revolving line of credit. This innovative product is designed to deliver instant payment finality while allowing businesses to settle transactions entirely in U.S. dollars.
Voltage Credit aims to address the common frustrations enterprises face, including lengthy settlement times, chargeback exposure, and the expenses associated with traditional payment systems. By tapping into a revolving credit line on demand, businesses can transmit payments rapidly over Bitcoin networks without directly interacting with cryptocurrency on their balance sheet. This system fosters operational efficiency by simplifying treasury management.
The introduction of Voltage Credit follows a landmark moment for the company in facilitating the first publicly reported $1 million payment over the Lightning Network between Secure Digital Markets and Kraken. This achievement showcased the Lightning Network’s capability for institutional-grade settlements, setting the stage for Voltage Credit to enhance the infrastructure by tackling one of the key impediments to enterprise Bitcoin adoption: working capital efficiency.
Graham Krizek, CEO of Voltage, emphasized that businesses should not have to sacrifice the speed and cost benefits of Bitcoin transactions for the financial flexibility necessary to operate effectively. “Until now, using Bitcoin for payments meant managing cryptocurrency on your balance sheet. Voltage Credit eliminates that trade-off,” Krizek commented. He highlighted that businesses can send payments instantly over the Lightning Network, denominated in either USD or Bitcoin, aligning with their specific operational needs.
The Voltage Credit product operates differently from traditional Bitcoin lending solutions, which typically focus on retail investors borrowing against set collateral. It is uniquely tailored for the operational necessities of businesses, functioning as a true revolving credit line. Businesses can draw funds as needed, pay interest only on what they utilize, and see their available credit restored immediately upon repayment. Additionally, credit limits can expand as transaction volume increases, ensuring that the financial resources grow alongside the business.
Key features of Voltage Credit include:
- USD Settlement Flexibility: Credit repayments can be made in U.S. dollars from a standard bank account, eliminating the need for forced Bitcoin liquidations and streamlining accounting processes.
- Revenue-based Underwriting: Since Voltage operates the underlying payment infrastructure, credit limits are based on actual transaction volumes rather than static collateral.
- Compatibility with Lightning and On-chain: Businesses have the option to use the Bitcoin rail that suits their specific use cases, whether that involves Lightning transactions or on-chain movements.
Bobby Shell, VP of Marketing at Voltage, pointed out the tangible benefits for CFOs and treasury departments, stating that this innovation resolves a major pain point by offering instant settlement and minimal fees without the complexities typically associated with treasury functions. “No forced crypto exposure, no guessing how much capital to lock up. Just a revolving credit line you can tap into, denominated in either USD or Bitcoin,” he said.
Voltage Credit has garnered interest from a diverse spectrum of businesses, spanning both cryptocurrency-native companies and traditional enterprises delving into Bitcoin payment infrastructure for the first time. For those outside the crypto ecosystem, the allure lies in the Lightning Network’s capacity for instant and global settlements at significantly lower costs compared to conventional payment systems. Voltage Credit allows these businesses to reap the benefits of rapid transactions while maintaining treasury and accounting entirely in USD if preferred.
Conversely, enterprises engaged in digital assets—such as exchanges, payment service providers, and miners—often struggle with traditional financing mechanisms. Banks typically don’t recognize Bitcoin revenue as an asset for underwriting, and current crypto lending products mandate that businesses lock up Bitcoin as collateral, potentially triggering tax liabilities and exposing corporate treasuries to market volatility. Voltage Credit aims to bridge this gap by treating consistent payment flows as reliable indicators for accessing scalable working capital, enabling businesses to align their Bitcoin revenue with USD-denominated expenses without needing to liquidate their assets.
The product boasts no origination fees and presents a straightforward fixed annual percentage rate on outstanding balances. Currently, Voltage Credit is available to qualified businesses operating in the United States.
