Cryptocurrency exchange Bitfinex announces personal loans in the top two digital currencies, Bitcoin and Ethereum. The new product is launched over its peer-to-peer lending site Bitfinex Borrow.
People can now easily get personal loans in BTC and ETH via using the Bitfinex Borrow with full security and credibility as the company is a renowned place for cryptocurrency trading.
Collateral Currencies
People, who are willing to obtain a loan, will have to place recommended currencies as collateral. The firm is accepting Euro (EUR), US Dollars (USD), Yen (JPY), and Tether (USDT). However, for some time being, it is accepting only the US dollar as collateral.
As per the information mentioned in the press release, people will get a BTC loan of 80% of their submitted USDT or USD amounts. If JPY is used as collateral borrowers will obtain a loan of 70% of their total holdings. What’s more, the Annual Percentage Rate (APR) on Bitcoin’s loan stands at 4.16%, while the APR value on Ethereum’s loan stands at 1.14%.
“We’re pleased to launch bitcoin and Ethereum peer-to-peer loans for our growing customer base on Bitfinex Borrow,” Bitfinex CTO Paolo Ardoino stated. “These latest additions to Bitfinex Borrow further demonstrate our commitment to delivering quality products for our users.”
But there is a must condition to get loans as borrowers will have to verify themselves with the platform. Even a person with an intermediate verification is not able to take benefit of this service of Bitfinex.
As per the site, Bitcoin Borrow “acts as a facilitator that provides the technology that enables borrowers and lenders to transact with each other. Bitfinex Borrow allows borrowers and lenders to experience the transparency of P2P along with the other benefits, such as the high rewards and the flexibility it has to offer.
So, the lending site of Bitfinex does not offer loans directly to users but rather offers peer-to-peer (P2P) services. In this way, one user can obtain a loan from another user by placing crypto assets as collateral.
As Bitcoin’s adoption is breaking new records, more and more businesses are adding cryptocurrency to their operations. For instance, payment giant PayPal started offering digital currencies to users for payments across the world. The Bitcoin lending field has a presence in the market for a long time, but now it is maturing after the entry of big institutions.