[Digital Today reporter Chi-gyu Hwang] Bitcoin (BTC) infrastructure company Voltage has introduced a revolving credit line system for businesses called Voltage Credit, The Block reported on Feb. 19 local time.
The system allows companies to execute instant USD payments using the Lightning Network, with repayment made through regular bank accounts.
Voltage said existing crypto loan products require bitcoin as collateral, leading to tax issues and price volatility risks. It said Voltage Credit addresses these issues by setting credit limits based on a company's actual transaction volume. Voltage Credit applies a fixed annual interest rate with no opening fee. Voltage CEO Graham Krizek (그레이엄 크리젝) said, "Bitcoin payment infrastructure should be usable by businesses without them having to directly hold cryptocurrency."
The announcement follows a $1 million Lightning Network transaction that Secure Digital Markets (SDM) and Kraken completed through Voltage on Jan. 28.
The Lightning Network is a layer-2 protocol based on the Bitcoin blockchain. It supports off-chain transactions to help reduce fees and confirmation times.
Chi-gyu Hwang
delight@d-today.co.kr