January 2022 guide to Abra products
A
bra is a well known cryptocurrency provider that has been operating since 2014, initially as a money transfer service.
In this guide:
Disclaimer: All of the information written on Coincrop is without influence and based on our analysis. No guarantee is offered concerning the accuracy of this information and therefore, any individual following up on it does as such completely at their own risk. Rates are correct at time of publication.
What is Abra?
Abra is a cryptocurrency platform offering a number of products but primarily focusing on earning and borrowing. The service is accessed using an application – either on Android or iOS. The application functions as a digital wallet allowing you to send and receive cryptocurrencies as well as purchasing digital assets.
The service is particularly well suited to the U.S. and Philippines as it integrates with bank accounts allowing users to directly fund their Abra accounts.
Some of the service features include:
• Easily transfer funds between mobile devices
• Over 50+ currencies supported
• Send and receive money, pay merchants or buy crypto
• Low fees: No charge for sending, 1% on exchange rates.
• Multiple account funding options
Who is behind Abra?
The Abra management team compromises:
• Bill Barhydt – CEO and Founder
• Caroline Finch – VP of Marketing
• Ben Liams – VP of Trading and Credit Markets
• Daryl Puryear – CTO
• Robert Valdes-Rodtriguez – VP of Global Sales
• Willie Wang – VP of Engineering
What is the history of Abra?
Abra was founded in 2014 by Bill Barhydt in Silicon Valley although not initially as a cryptocurrency company. In February 2017, the business expanded significantly into the Philippines and the remittance market. Filipino workers working abroad used the app to send money back home to their families.
In March 2018, Abra addressed the cryptocurrency market by adding support for 20 assets including Ethereum, Litecoin, Bitcoin and Stellar.
By July 2021, Abba supported the purchased of more than 100 cryptocurrencies.
How much can I earn?
| Deposit assets | Reward assets | APY Rate |
|---|---|---|
|
| 10.0% - flexible |
|
| 10.0% - flexible |
|
| 7.50% - flexible |
|
| 7.50% - flexible |
|
| 7.50% - flexible |
|
| 6.00% - flexible |
|
| 3.00% - flexible |
|
| 3.00% - flexible |
|
| 2.65% - flexible |
|
| 2.50% - flexible |
|
| 2.00% - flexible |
|
| 2.00% - flexible |
|
| 1.75% - flexible |
Tether (USDT)
Polkadot (DOT)
TrueUSD (TUSD)
USD Coin (USDC)
USDP Stablecoin (USDP)
Polygon (MATIC)
Cardano (ADA)
Crypto Perx (CPRX)
Ethereum (ETH)
Stellar (XLM)
Litecoin (LTC)
Bitcoin Cash (BCH)
Bitcoin (BTC)How does borrowing work?
Part of the Abra product offering is the possibility of borrowing funds in return for using your existing cryptocurrency assets as collateral. There are 3 stablecoins that can be borrowed: TUSD, USDC and USDP. Two assets are acceptable as forms of collateral – Bitcoin or Ethereum.
Loan terms are flexible with durations of between 1 and 3 years possible. Interest rates vary between 0% and 9.95% depending on the loan-to-value.
For example, to borrow $10,000 of USDC for 1 year at a rate of 0% with an LTV of 15%, collateral of 1.37 Bitcoin (worth $48,618) would be required.
Why borrow?
Borrowing from Abra has several advantages when compared to a traditional bank loan:
• Avoiding the need to pay capital gains tax as no crypto is sold
• No credit checks
• Flexibility to choose your own repayment terms
• Interest rates as low as 0%
• Loans arranged as quickly as 10 minutes
What is a borrowing margin call?
The terms of a loan from Abra require that the borrower ensures that the loan-to-value doesn’t fall below the value agreed at the beginning of the loan. For example, if the loan-to-value was agreed at 15%, but the borrower must ensure that this not not fall otherwise the borrower risks losing all of the collateral that have been used to secure the loan.
How much does it cost to borrow?
| Asset to borrow | LTV | Collateral | APY Rate |
|---|---|---|---|
Paxos Standard (PAX) |  Bitcoin (BTC) | 0.00% | 10% |
Paxos Standard (PAX) | Bitcoin (BTC) | 3.95% | 20% |
Paxos Standard (PAX) | Bitcoin (BTC) | 7.75% | 33% |
Paxos Standard (PAX) | Bitcoin (BTC) | 9.95% | 50% |
Paxos Standard (PAX) |  Ethereum (ETH) | 0.00% | 10% |
Paxos Standard (PAX) | Ethereum (ETH) | 3.95% | 20% |
Paxos Standard (PAX) | Ethereum (ETH) | 7.75% | 33% |
Paxos Standard (PAX) | Ethereum (ETH) | 9.95% | 50% |
TrueUSD (TUSD) | Bitcoin (BTC) | 0.00% | 10% |
TrueUSD (TUSD) | Bitcoin (BTC) | 3.95% | 20% |
Are my assets safe with Abra?
In July 2020, Abra was charged by two U.S. regulators: the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The dispute related to “unregistered security-based swap transactions”.
Does Abra offer any other products?
In addition to the earn and borrow products, Abra provides the following:
• Trade – Over 100 cryptocurrencies are supported with fiat on-ramps supported (ACH, wire, credit card, SEPA etc.)
• Platinum Services available to institutions, high-net-worth individuals, family officers and RIAs.
How do I contact Abra?
Support is available from within the Android or iPhone apps.
Abra does not provide telephone support.
How do I get started?
Visit Abra to open an account.
Jonathan
An editor at CoincropJonathan is a Crop Crop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.
