Bitget To Launch New Product To Expand On Crypto Lending Sector

Key Points:

• Cryptocurrency exchange Bitget has launched Crypto Loans, a lending service using a dual-coin approach.
• Users can stake one asset as collateral and borrow a more liquid asset in return.
• Bitget aims to provide an alternative funding option to users turned down by traditional lenders, with a user-friendly loan process modeled after conventional financial institutions.

According to a July 4 news release, Bitget, a well-known crypto-exchange, has entered the “crypto lending” market with the debut of its new product, Crypto Loans.

The exchange states the loan product employs a “dual-coin approach.” Those who stake one coin will be compensated with another asset. Customers of Bitget’s new Crypto Loans service will be able to stake low-demand currencies. Bitget will lend such users more liquid assets in exchange.

Bitget has established itself in the cryptocurrency industry by providing both copy-trading and crypto-derivatives services, and it is now time to cater to the rising loan demand. Furthermore, the new business hopes to attract a new audience of customers who have been turned down by conventional lenders and are searching for alternative funding options via digital assets.

Bitget’s Crypto Loans utilize a dual-coin strategy, allowing customers to stake one of their assets as collateral in return for the option to borrow a matching amount in another currency. Each loan is granted at a fixed interest rate, and the amount borrowed is decided by the collateral’s market value. Loans are granted for a certain length of time, after which customers may opt to repay sooner or later.

With this in mind, Bitget has simplified the loan process in order to not only ease user onboarding but also to emulate the processes used in conventional financial institutions.

The exchange said that its lending service is modeled around conventional financial services in order to ensure easy onboarding. The initial step is to stake collateral, which is followed by the automated release of the loan money, guaranteeing borrowers have a user-friendly and efficient experience. Users will have the ability to spend the cash as required after receiving the loan, as well as alter the collateral by adding or withdrawing depending on their circumstances or unique needs.

It is unclear if Bitget is prone to similar liquidity issues since the company’s loan business is designed to provide consumers temporary access to more cash rather than permanent returns on staked monies. The exchange has not disclosed if it intends to reinvest or utilize the monies staked by its consumers.

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Harold

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