NetCents receives $1.4-billion (U.S.) credit facility
2020-06-19 16:09 ET - News Release
Mr. Clayton Moore reports
NETCENTS TECHNOLOGY NEGOTIATES INDUSTRY LEADING CREDIT FACILITY
NetCents Technology Inc. has received an institutional credit facility totalling $1.4-billion (U.S.) to power merchant settlements.
NetCents negotiated this facility to increase the potential of Cryptocurrency as a means of exchange. To date, the major obstacle has been volatility. Merchants and Consumers alike are reluctant to hold crypto positions because of the fluctuation of most currencies.
This breakthrough financing - will provide NetCents the capacity to eliminate volatility risk for all of its merchants. Furthermore, this financing structure will help many crypto exchanges by creating a deeper market for mainstream cryptocurrencies.
NetCents has partnered with a handful of forward-thinking institutions to use its merchant order flow as a supply for a short-term crypto portfolio. The credit line will enable NetCents to have money in the market over an extended period, and be able to profit from arbitrage opportunities. The profits from this arbitrage will ultimately allow NetCents to reduce fees to its client base.
"This is a huge win-win-win," stated Clayton Moore, Founder and CEO of NetCents Technology. "Merchants benefit because this facility and trading program will reduce our operating costs, which will enable us to charge smaller fees to our merchants in the future. NetCents will benefit as it has a new revenue stream to support operations - these trading strategies we can deploy are highly profitable. The exchanges benefit as well due to the increased capital deployed in the market, which means that over time, volatility will decline, creating an environment allowing mainstream participants to adopt crypto as a means of exchange and not purely speculation."
This institutional credit line, totaling 1.4 billion USD annually, provides NetCents the merchant settlement capital to further expand and offer speedier merchant payouts. Benefits include:
Ability to front-load merchant settlements
Removing all limitations when providing merchant payouts
Eliminates merchant and partner concerns regarding NetCents' ability to handle significant order flow
Removes all obstacles for unlimited processing and all risk associated for merchant payouts
Facilitates continued merchant growth
Largest known credit line granted to a cryptocurrency payments company
"This goes to show the support cryptocurrency is receiving at the institutional level and how quickly cryptocurrency payments are becoming a reality to traditional financial institutions," added Mr. Moore. "Crypto is becoming an asset class that traditional asset managers are becoming interested in - and that trend means that the entire asset class's value is destined to increase."
About NetCents
NetCents Technology Inc, the transactional hub for all cryptocurrency payments, equips forward-thinking businesses with the technology to seamlessly integrate cryptocurrency processing into their payment model without taking on the risk or volatility of the crypto market. NetCents Technology is registered as a Money Services Business (MSB) with FINTRAC.