IP Addresses: New Collateral for Loans

13 Mar 2025 8:48 am GMT+0000 Date Time

IPV4 Addresses Used as Bail for Loans
IPV4.global, a company specializing in IPV4 address trading, has introduced a new service allowing owners of public IPV4 addresses to use them as collateral for loans. This initiative follows the lead of Cogent, which in 2024 issued long-term bonds worth $206 million secured by IP addresses. Through this financial instrument, companies can raise funds by selling bonds to investors, with the IPV4 addresses serving as the underlying asset. If the borrower defaults, bondholders receive IPV4 addresses as compensation. Currently, the market value of an IPV4 address is around $30, while renting to large cloud providers like AWS costs $44 annually. With a scarcity of IPV4 addresses and slow adoption of IPV6, these assets remain highly liquid. Building on Cogent’s model, IPV4.global now offers loans to address block owners. The first borrower, a data center operator, used the loan to expand their cloud business. IPV4.global is prepared to offer loans up to $100 million, dependent on the pledge size and borrower’s financial status. In case of default, IPV4.global plans to sell the pledged IP addresses to recoup the loan amount. However, significant sales may take time due to market constraints. Part of the Hilco Global financial group, IPV4.global is aligning this new lending opportunity with the company’s existing strategies, including factoring services for receivables financing. While the IPV4 market remains vibrant, the long-term sustainability of this loan scheme is uncertain given the eventual shift to IPV6, which offers an abundance of available addresses and may diminish the value of IPV4 resources.

IPV4 Addresses Used as Bail for Loans

IPV4.global, a company specializing in IPV4 address trading, has introduced a new service allowing owners of public IPV4 addresses to use them as collateral for loans. This initiative follows the lead of Cogent, which in 2024 issued long-term bonds worth $206 million secured by IP addresses.

Through this financial instrument, companies can raise funds by selling bonds to investors, with the IPV4 addresses serving as the underlying asset. If the borrower defaults, bondholders receive IPV4 addresses as compensation.

Currently, the market value of an IPV4 address is around $30, while renting to large cloud providers like AWS costs $44 annually. With a scarcity of IPV4 addresses and slow adoption of IPV6, these assets remain highly liquid.

Building on Cogent’s model, IPV4.global now offers loans to address block owners. The first borrower, a data center operator, used the loan to expand their cloud business. IPV4.global is prepared to offer loans up to $100 million, dependent on the pledge size and borrower’s financial status.

In case of default, IPV4.global plans to sell the pledged IP addresses to recoup the loan amount. However, significant sales may take time due to market constraints.

Part of the Hilco Global financial group, IPV4.global is aligning this new lending opportunity with the company’s existing strategies, including factoring services for receivables financing.

While the IPV4 market remains vibrant, the long-term sustainability of this loan scheme is uncertain given the eventual shift to IPV6, which offers an abundance of available addresses and may diminish the value of IPV4 resources.

/Reports, release notes, official announcements.