Cryptocurrency news

Wallet added the possibility of lending in stablecoin PAX secured by BTC

Wallet added the possibility of lending in stablecoin PAX secured by BTC

Operator of the largest online wallet added a credit function for users. The Borrow service allows you to take a loan in a dollar stablecoin secured by BTC.

The firm States that the feature is available to wallet owners around the world, and loans are granted immediately after collateral is provided. Although the statement does not specify in which stablecoin loans will be issued, last year to the wallet support for the PAX stablecoin was added.

The new Borrow product appeared after August 2019 launched a lending service for institutional investors. In the first month of the service, the company issued loans for $10 million, and by November this figure reached $100 million.

“Institutional and retail investors have the same financial goals – to increase wealth and manage risk. However, the tools they have are very different, ” said Peter Smith, co-founder and CEO “Now, with our Suite of trading products and Borrow, retail users can trade like large firms without having to sell their accumulated cryptocurrency, and make all transactions directly in their wallet.”

The cryptocurrency lending market is growing rapidly. Back in August last year, its size reached
almost $5 billion, and a year ago, the deposits of users of the credit startup BlockFi reached
$53 million.

In the summer of 2019, the Binance cryptocurrency exchange launched
a new cryptocurrency lending service where users can lend out their own crypto assets. In addition, earlier this month, BitGo launched
cryptocurrency lending service for institutional investors with support for BTC, ETH, LTC, BSH and DASH.