The Launch of Borrow: Democratizing Crypto Lending
In an exciting turn of events, Blockchain.com has unveiled its latest lending product, Borrow, which embraces the retail market. This isn’t just a service for high-flying institutions anymore; it allows anyone with a crypto wallet to jump on board. Blockchain.com made the announcement on March 10, revealing their intent to launch the service in over 180 countries. The lending desk, which catered to institutions back in August 2019, has now decided its time to lower the barriers for everyday users.
How Borrow Works
With Borrow, users can borrow Paxos Standard stablecoin (PAX) against their holdings of Bitcoin (BTC). This means you don’t need to sell your beloved Bitcoin to access liquidity—sounds like a win-win, right? Here’s how it breaks down:
- PAX Loans: At the outset, PAX is the only stablecoin on offer for loans; however, the word is that Blockchain.com plans to expand options in the future.
- Direct Wallet Integration: Borrow is accessible directly through Blockchain.com’s native wallet, streamlining the process further.
- Expansion Plans: More assets are on the horizon, depending on user feedback and market demand.
Joining the Big Leagues: Retail Traders Are Not Alone
Peter Smith, the co-founder and CEO of Blockchain.com, believes that the new lending functionality levels the playing field. As he eloquently pointed out, institutional and retail investors aspire to similar goals, like growing their wealth without peddling their crypto wealth. Here’s what he had to say:
“Now, with our suite of trading products and Borrow, retail users can trade like the big guys without selling the crypto they’ve stockpiled or leaving their Wallet.”
The Evolution of the Crypto Lending Market
The crypto lending landscape has bloomed rapidly lately. Since its institutional lending début in 2019, Blockchain.com had reportedly loaned over $120 million as of November, lighting up the market compared to a modest $10 million in its launch month. With many crypto firms recently rolling out their lending services, competition is heating up. For example, Buy Go also stepped into the fray with their own institutional-level service just recently.
The Future Is Bright for Crypto Lending
As the industry grows, the prospects for services like Borrow look promising. With retail investors having more access to tools that were once the privilege of big players, the landscape of crypto lending is set for noticeable transformation. So buckle up, crypto enthusiasts. Whether you’re looking to borrow against BTC or just want to cozy up with some PAX, the future of finance might just be a tad more exciting than we imagined.
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