Leading cryptocurrency platform, Blockchain.com has launched Borrow, a new product offering for users to borrow USD-denominated stablecoins against crypto held in their Blockchain.com Wallet, thus becoming the first major cryptocurrency platform to offer lending directly to everyday consumers.
The launch follows Blockchain.com’s successful launch of an institutional lending desk last August, which has rapidly increased originations from $10M in the first month to $120M in November. By offering the retail market access to the same liquidity pool as institutional investors, the firm is addressing the shortage of USD on both sides of the crypto market.
Commenting on the new Borrow feature on Blockchain.com, Peter Smith, the firm’s co-founder, and CEO said in a press release shared with Coinfomania:
Institutional and retail investors have the same financial goals – grow wealth and manage risks – but the tools at their disposal are vastly different. 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.
Starting today, users in over 180+ countries can borrow USD Digital stablecoins against bitcoin held in their Blockchain.com Wallet.
As soon as the collateral is posted, users receive their loans and are free to use the coins however they see fit. To close a loan, users simply pay back the amount owed when it is convenient or aligns with their investment strategy.
Notably, the new “Borrow” product on Blockchain.com follows the exchange’s earlier integration of payment gateways for the British Pound and Turkish Lira, and listing of popular crypto projects Algorand and DGLD.
Author: Wilfred Michael