Auto dealer rolls out Bitcoin-backed loans for luxury car purchases
Houston-based auto dealer Post Oak Motor Cars (POMC) has teamed up with crypto custody firm New York Digital Group (NYDIG) to roll out an option that allows its customers to purchase vehicles with Bitcoin-backed loans.
The partnership with the Bitcoin-focused financial services firm will grant clients of POMC access to a well-developed array of Bitcoin (BTC) services, including custody and lending.
The collaboration will enable POMC to offer customers access to NYDIG’s institutional-grade, 100% cold storage custody solution […] The product does not require customers to make any interest payments during the life of the loan.
According to an official press release, customers who don’t wish to sell their Bitcoin can use them as collateral and access a portion of its value by borrowing USD.
Due to the full-stack nature of NYDIG’s platform, the partnership makes it possible for POMC to use its appreciated Bitcoin treasury holdings to fund further expansion. It will also allow the company’s employees to allocate a portion of their paychecks to Bitcoin.
“POMC will be leveraging NYDIG’s platform to hold its appreciated Bitcoin treasury position and efficiently finance an expansion of POMC’s footprint,” said the Houston-based auto dealer.
The Chief Innovation Officer at NYDIG Patrick Sells, while commenting on the issue, said:
This partnership marks an important milestone as we start to help Americans unlock the spending power of their Bitcoin through borrowing USD against it without selling their long-term Bitcoin holdings.
The announcement also revealed that POMC has already sold its first luxury automobile financed with Bitcoin. A client bought a Rolls Royce Ghost financed with Bitcoin held at NYDIG. Furthermore, POMC revealed that its new state-of-the-art facility located in Woodlands, Texas would become the company’s first Bitcoin-financed project.