Founder: Max Kei (CEO)

Date Founded: March 2024

Location of Headquarters: Lugano, Switzerland

Website:

Public or Private? Private

Meet Max Kei, the driving force behind Debifi! As CEO and Founder, Max isn’t just any entrepreneur; he’s uniquely positioned at the intersection of Bitcoin P2P technology and traditional banking. This seasoned banker turned Bitcoin builder is the perfect person to create Debifi, a noncustodial, bitcoin-backed P2P lending platform specifically designed to serve institutions.

Max’s journey into the Bitcoin world started back in 2017 when he began contributing to Hodl Hodl. You might know Hodl Hodl – it quickly became a go-to noncustodial P2P trading platform for many.

Fast forward to 2020, and Max played a key role in launching Lend at Hodl Hodl. This was a game-changer as the first noncustodial P2P borrowing and lending product in the Bitcoin space.

Lend at Hodl Hodl really took off, especially in Latin America and Southeast Asia, becoming a valuable tool for microloans. Even prominent figures like Preston Pysh (now a Strategic Advisor at Debifi) took notice and expressed their interest. And if that wasn’t enough, renowned cypherpunk Adam Back himself praised its innovative approach.

According to Max, Debifi is already gaining traction because of the solid reputation of the team behind Lend at Hodl Hodl – many of whom are now working on Debifi. People recognize the team’s expertise and history of success.

“A lot of lenders and borrowers are choosing Debifi because they trust our team’s extensive experience in this space,” Max shared with Bitcoin Magazine.

“We’ve proven our resilience by navigating multiple bear markets and not just surviving, but thriving. That track record gives people confidence,” he added.

“Now, we’re building on the successful foundation of Lend at Hodl Hodl and taking that concept to the institutional level with Debifi.”

From Banker To Bitcoiner

Before diving headfirst into Bitcoin, Max spent a decade working as a private banker. It’s a world away from crypto, right?

But in late 2015, Max decided to resign and, as he puts it, truly “go down the Bitcoin rabbit hole.” This shift was partly sparked by a memorable client interaction.

“About a year before I left banking, I remember sitting in my office with a client. He pulled out his phone and said, ‘You know, I might not need you in the future because I have Bitcoin,’” Max recounts.

The client then proceeded to send $15,000 worth of Bitcoin to someone in Brazil, right there in front of Max! Initially, Max thought his client was completely off the wall. However, it didn’t take long for him to realize that maybe, just maybe, his client was onto something significant.

“I started doing my own research into Bitcoin, and I quickly understood – this is a real, transformative technology,” Max explained.

From that moment, Max made the pivot to Bitcoin. Now, after eight years of building in the Bitcoin space, he’s developed a nuanced perspective: banks will still play a vital role, even in a hyperbitcoinized future.

“Banks aren’t simply going to disappear,” Max clarified.

“Instead, they’ll evolve into essential infrastructure providers for Bitcoin companies, for startups, for everyone. They’ll remain a crucial backbone of the financial system,” he believes.

This realization came to him as banks and other financial institutions started expressing interest in using the very platform he helped create – Lend at Hodl Hodl.

Differentiating With Debifi

Within just months of launching Lend at Hodl Hodl, the team started receiving inquiries from institutions eager to use the platform.

“They were saying, ‘We want to offer bitcoin lending services,’” Max remembers.

“But we recognized that the needs of microlending and institutional lending are quite different. We didn’t want to mix those worlds. That realization sparked the idea for something new, something specifically tailored for institutions. And that’s how Debifi was born,” he explained.

The concept of Debifi began to take shape in Max’s mind in 2022. By the following year, they had successfully raised capital from venture capital firms like Ten31 and Timechain to develop a minimum viable product (MVP). And by March 2024, Debifi was officially launched and live!

Currently, the platform is operating in beta, but the official, full version is set to launch at the end of this month. However, Max emphasizes, don’t let the “beta” tag fool you – Debifi is already fully functional and ready to go.

“Just because we call it beta doesn’t mean it’s not fully operational. It’s working, it’s live, it’s ready,” he clarified.

Which naturally leads us to the next question: Exactly *how* does Debifi work?

How Debifi Works

Debifi offers a seamless experience through both a website and a mobile app that work together harmoniously.

“One of our key unique features is that the mobile app serves as your secure key storage,” Max explained. “Think of the mobile app as your personal wallet, holding your private key. But when you want to engage in lending contracts, that’s where the website comes in.”

So, when it’s time to sign a transaction, create a loan escrow, or make a loan payment, you’ll use the mobile app to authorize those actions.

For those who prefer hardware wallets, Debifi also supports COLDCARD devices (both the Mk4 and the Q). And Max has plans to expand compatibility further, aiming to support a wide range of hardware wallets.

“We’re working to add support for Jade from Blockstream, Ledger devices, Trezor, the Foundation Passport, and BitBox – all the trusted names. We want to give our customers flexibility and choice,” Max emphasized.

Security is paramount, and Debifi loans are collateralized and held in a multisignature (multisig) wallet. This isn’t just any multisig setup – it features four keys, and crucially, three out of the four are required to authorize any transactions.

“At Debifi, we’ve implemented a unique multi-signature arrangement,” Max highlighted. “All loans are secured in a 3-out-of-4 multisig wallet. The industry standard is often just 2-out-of-3.”

In Debifi’s setup, the borrower, the lender, and Debifi each hold one key. The fourth key is held by AnchorWatch, a trusted institution. Max explains that having AnchorWatch as the fourth key holder significantly enhances security.

“With two reputable institutions holding keys, even if a borrower’s or lender’s keys were somehow compromised, attackers would still need to compromise another key,” Max pointed out. “If we were to use a simpler 2-out-of-3 model without AnchorWatch, a situation could arise where attackers could potentially gain control with just two keys, leaving the third key unnecessary.”

Debifi loans are also overcollateralized to manage risk. This means if the value of the bitcoin collateral drops below a predetermined level (which is defined in the agreement between borrower and lender), automatic liquidation will occur. Despite this, the average APR (Annual Percentage Rate) is just above 10%.

Max explained that their research shows many users are willing to accept a slightly higher APR in exchange for the security and control of noncustodial loans.

“We conducted a survey with 300 Bitcoin users and presented them with a straightforward choice: borrow custodially at an 8% interest rate, or borrow noncustodially at 11% or 12%,” he shared. “An overwhelming 91% of respondents stated they would rather keep control of their keys and choose the noncustodial option.”

Through the Debifi platform, users can access loans up to $1 million, with loan durations ranging from three to twelve months. Excitingly, as of April, they are expanding loan terms to 24 months.

Currently, users can borrow in U.S. dollar stablecoins, U.S. dollars, euros, and Swiss francs. Debifi is actively working to expand currency options to include British pounds, Brazilian reals, and Mexican pesos in the near future.

Debifi’s revenue model is based on origination fees, which are taken from the collateral placed in escrow. They also have a dedicated dispute resolution team to assist in resolving any loan repayment issues or other challenges that may arise.

What’s Next For Debifi

Debifi has recently made a strategic move by bringing on Preston Pysh as a strategic advisor. Preston will be instrumental in helping Debifi expand its network, increase its public visibility, and provide valuable product improvement advice.

Looking ahead, Debifi also plans to partner with Blockstream’s Asset Management (BAM) division. BAM will leverage Debifi’s technology as a core provider for institutions looking to offer bitcoin-backed lending products to their clients.

Beyond these key partnerships, Max hinted at several other significant collaborations in the pipeline, with announcements expected in the coming months – so stay tuned!

He concluded with a direct message to institutions considering entering the bitcoin-backed lending space.

“Debifi is designed to be your plug-and-play solution for bitcoin-backed lending,” Max stated.

“We provide the complete infrastructure you need. We’ll handle onboarding, offer dedicated support, and equip you with all the necessary tools,” he added.

“Essentially, we aim to be your one-stop shop. You don’t need to build anything from scratch because it’s already here and ready to use. Furthermore, we bring you the customers and facilitate direct communication. And perhaps best of all, as a liquidity provider, you pay us absolutely nothing. Zero fees.”

It’s hard to disagree – Max and his team definitely seem to be building something truly remarkable here.