Cion Digital and CarNow, a leading digital retailer in the automotive industry, have announced a partnership to help crypto holders purchase vehicles using their holdings.
Cion Digital’s integration with CarNow will allow car dealers the option to accept and benefit from fast and compliant crypto payments for their cars, the companies said in a press release shared with Invezz.
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The venture is possible thanks to Cion Digital’s ready-to-deploy technology offering access to modular payments. Apart from direct payments, lending solutions are accessible via a “first-of-a-kind crypto lending marketplace”.
Here, consumers seeking car deals can use crypto as collateral and get loans to complete the purchases. According to the announcement, crypto loans will be available at highly competitive rates.
With it, car dealer companies seeking to explore crypto payments can leverage real-time connectivity and support and be able to add digital assets to legacy payment systems.
Tim Cox, co-founder of CarNow said that the partnership brings to their customers “the most inclusive, dealer-friendly payment options.”
“Now our dealers can better connect with a new kind of buyer who is looking to leverage next generation cryptocurrency payment options and create a more frictionless car buying journey,” he added.
Cion Digital president and co-founder Fred Brothers said the deal is great for crypto users, with the collateral allowing them to access what he termed as “a lower cost loan.”
“With more than half of Millennials now owning crypto, CarNow is increasing dealer capabilities for this fast-growing market of buyers who want more financing and purchasing options at the dealership,” he noted.
Buying with crypto will initially be accepted only via the top 20 coins, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Litecoin (LTC). Stablecoins in the top 20 markets- Tether (USDT) and USD Coin (USDC) – are also accepted.
The service will be available to 5,000 dealers currently collaborating with CarNow.
Consumers will be expected to adhere to identity verification (KYC) and anti-money laundering (AML) requirements.
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