Hodlnaut is based in Singapore, and is regulated under the Payment Services Act (PS Act) by Singapore Law. As of 16th March 2022, we are excited to share that we have received an in-principle approval (IPA) letter for a Major Payment Institution License in Singapore from the Monetary Authority of Singapore (MAS) under the PS Act and currently operating under an exemption given by MAS. Our token swap service offered by Hodlnaut Pte Ltd is the only regulated activity under the Payment Services Act. You can also check Hodlnaut Pte Ltd’s License status here: https://www.mas.gov.sg/regulation/payments/entities-that-have-notified-mas-pursuant-to-the-ps-esp-r; and our official press release on our website here:

We have incredibly stringent capital requirements of our counterparties. In any case, we are very selective with whom we lend out to. We only lend to corporate entities with good credit scores, and the Loan-to-Value (LTV) Ratio of our loans is usually 70% or lower. For this reason, the risk of default is very low. Like most DeFi products out there, we lend out to more than one counterparty to reduce counterparty risk.

We lend out the assets we receive to established and vetted financial institutions and reliable decentralised protocols that pay an interest rate. As for the attractive interest rates, we analyse supply and demand on our available crypto assets to set our interest rates that adjust as market conditions change. Also, we take earnings from our previous months into consideration.

The platform runs on a secure cloud infrastructure on AWS, and all traffic is encrypted with SSL encryption. We encrypt and anonymise as much data as possible on our servers. Additionally, we use industry-standard algorithms for password hashing and procedures. We also require Two-Factor Authentication (2FA) when users log in to their account or make crypto withdrawals. Rate-limiting and Captcha security measures are implemented on certain account operations, such as your login attempts.

The customer support team responds to support tickets sent via email promptly within 24 hours on weekdays. You can also reach out to the team via our live chat and they will respond within a few minutes during business hours. Alternatively, you can also raise your questions in Hodlnaut's Official Telegram Chat where Hodlnaut's admins and community members are very active: