Author: Judith Mwaura

Understanding Over-Collateralization Over-collateralization (OC) refers to the practice of providing collateral that exceeds the value of a loan. This extra collateral acts as a safety net, ensuring that if a borrower defaults, the lender can recover their funds by selling the collateral. For instance, a business owner seeking a loan might pledge assets—such as property or equipment—that are worth 10% to 20% more than the loan amount. Similarly, companies issuing bonds may also use over-collateralization to make their debt offerings more secure for investors. Key Takeaways At its core, over-collateralization is designed to improve a borrower’s or issuer’s credit rating…

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Introduction Crypto mortgage lenders are financial institutions or platforms that allow individuals to secure home loans using cryptocurrency as collateral. Unlike traditional mortgages that rely on credit scores, income verification, and fiat currency, crypto mortgages leverage digital assets such as Bitcoin (BTC) and Ethereum (ETH) to back the loan. As the cryptocurrency market matures, more lenders are entering the space, offering new opportunities for crypto investors to access home financing without liquidating their holdings. How Crypto Mortgage Lenders Work Crypto mortgage lenders operate by assessing the value of the borrower’s cryptocurrency and using it as collateral. The borrower deposits a…

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Flash loans are one of the most innovative features in decentralized finance (DeFi), providing users with the ability to borrow funds without requiring collateral. Unlike traditional loans that involve lengthy approval processes and need for assets as security, flash loans operate in an entirely different way. These loans are unique because they must be repaid within the same blockchain transaction, making them an instant form of borrowing. This rapid execution is made possible by smart contracts, which ensure that if the loan isn’t repaid within the designated time frame, the entire transaction is reversed, ensuring that no funds are lost.…

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Hedge funds have traditionally been a preferred choice for investors who want experts to manage their money while minimizing risk. These funds rely on visionary leaders, such as Ray Dalio and George Soros, along with a team of skilled analysts, to make informed investment decisions. Even the most successful hedge funds, which consistently beat the market, are always searching for new opportunities. With the emergence of cryptocurrencies like Bitcoin, they may have found their next big breakthrough. However, timing plays a crucial role in maximizing potential gains. Bitcoin’s exponential rise in value, despite facing market volatility and major stress tests,…

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What Are Stablecoins? Stablecoins are a type of cryptocurrency designed to maintain a stable value by being linked to another asset, such as a national currency, a commodity like gold, or a financial instrument. Unlike highly volatile cryptocurrencies like Bitcoin (BTC), stablecoins offer a more predictable value, making them more suitable for everyday transactions and payments. Key Takeaways Why Are Stablecoins Important? Bitcoin may be the most well-known cryptocurrency, but its price swings make it unreliable for day-to-day transactions. For example, Bitcoin surged from under $5,000 in March 2020 to over $63,000 in April 2021 but then dropped nearly 50%…

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In the rapidly evolving world of digital finance, enterprises are increasingly adopting Bitcoin and stablecoins for transactions. These cryptocurrencies offer businesses faster, more cost-effective, and globally accessible payment solutions compared to traditional financial systems. Here’s how enterprises leverage Bitcoin and stablecoins in their operations. 1. International Payments and Remittances Enterprises operating across multiple countries face challenges with cross-border payments, including high fees and slow processing times. Bitcoin provides a decentralized alternative, allowing businesses to send and receive payments without intermediaries. However, due to Bitcoin’s price volatility, many companies prefer stablecoins like USDT (Tether) or USDC (USD Coin), which are pegged…

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Mahmoud Ali Youssouf, the Foreign Minister of Djibouti, has been elected as the new Chairperson of the African Union Commission (AUC). He secured the position during the African Union summit held in Addis Ababa, Ethiopia, defeating Kenya’s Raila Odinga and Madagascar’s Richard Randriamandrato. Youssouf’s victory marks a pivotal moment in African leadership, as he assumes the role previously held by Moussa Faki of Chad since 2017. Following the election results, President William Ruto of Kenya convened an urgent meeting in Addis Ababa. The meeting aimed to discuss the implications of the AUC election outcome and to strategize on Kenya’s future…

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Baringo Senator William Cheptumo has sadly passed away at the age of 57. Senate Speaker Amason Kingi confirmed his death to the media on Sunday, February 16, 2025. Reports indicate that the senator had been receiving medical treatment at a hospital in Nairobi before his passing. It has since been revealed that Cheptumo passed away on the evening of Saturday, February 15, 2025. In one of his last social media updates, Senator Cheptumo expressed his well wishes to Raila Odinga as he sought election to the position of Chairperson of the African Union. His post highlighted his continued support for…

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Inspector General of Police, Douglas Kanja, has addressed the recent arrest of three traffic police officers who were caught accepting bribes in Nairobi’s central business district. The officers were apprehended by the Ethics and Anti-Corruption Commission (EACC) along Moi Avenue, with the officers reportedly collecting bribes amounting to Ksh48,000 over a two-hour period near Moi Avenue Primary and Junior School. Speaking to the media, Kanja explained that the government is in the final stages of rolling out a digital policing system aimed at reducing direct interaction between police officers and the public. This initiative is intended to tackle corruption within…

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Rigathi Gachagua, the former Deputy President, recently spoke about the issues surrounding President William Ruto and the alleged betrayal by the Head of State. Despite these allegations, Gachagua assured that the people of Mt Kenya are willing to forgive Ruto, though they will not forget what transpired. He made these remarks during the consecration service of Bishop George Gathari in Olkalou, Nyandarua County, where he emphasized that the Mt Kenya region would carefully consider its next steps. Gachagua stated that the people of Mt Kenya will engage in thorough consultations before making a decision on which presidential candidate to support…

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