OTC Desk

BlueSeed works with a multitude of global OTC crypto trading desks and family offices for large crypto and can assist with OTC crypto/fiat services (minimum $500k or more), an exchange platform. Information we require include: 

• Client KYC, source of funds information, and reason for OTC trade

• Transaction terms i.e. discounts (if any), currency of interest or preferred, trading monthly tranche size and total volume size

• Crypto wallet address for our due diligence 

Private Family Office Lender

BlueSeed has partnered directly with a large multi-billion dollar private family office group. This Crypto-Currency Loan product is structured similarly to a loan against a CD. 

General Features of the Loan Program

1. Collateral: 

Crypto-Currency Coins or Tokens placing in the top 100 of marketable coins on major Exchanges. All coins, tokens and smaller cap coins or tokens will be considered on a case by case basis that are well established and not in their initial offering period. They must either be or must be convertible into BTC, ETH, USDT or USDC. 

2. Length of Loan Process: 

3 to 7 days including the first tranche of funds depending on the client and their expeditious manner.

Common Indicative Crypto-Currency Loan Terms

1. Amount: $2 Million to $300 Million

2. Loan to Value: 85%

• Dependent on Coin Rank, Listed Exchange, Valuation, etc. The Net LTV after all costs will be more than 72% which exceeds market standards.

3. Term: 24 Months to 60 Months Non-Recourse

• Loan repayment terms are offered as soon as 24 months or as late as 60 months with a minimum lockup of 18 months.

4. Coupon: 2.25%

5. Loan Management: 4% 

• These costs are taken off the gross loan proceeds and is not refunded at repayment of the loan due to management of risk and potential hedging costs associated with holding collateral for a period of time.

6. Title: 

• Title transfers to name of the Family Office custodian 

• The custodian retains the coins or tokens for the duration of the loan; but, reserves the right to trade, sell, exchange or perform any duties a Family Office may perform during a Collateralized Loan period. If a material default occurs the Cryptocurrency will be liquidated to cure the default.

7. Tranches: 

• Family Office will release funds in multiple tranches

• Funds are released over 5 or more tranches; 1 to 4 days apart; within 3 to 5 days after close and transfer of coins. This is a mechanism used to mitigate risk and prevent market overexposure.

8. Legal, Underwriting, Holding and Analyst Costs

• Costs are included in 5 to 5a.

9. Origination: 3.5%

• Solely dependent on the Client and Consultant pre-negotiated fees.