If you are interested in using Bitcoin (BTC) in order to get collateral for crypto loans on ETHLend, we got good news for you. Aave, the fintech company that owns ETHLend, has announced that now the users can use Bitcoin as well as Ethereum to get LEND tokens.
Before today, you could only either use ETH or ERC20 tokens as a way to pay for the collateral, but now the company has decided to start accepting the most popular cryptocurrency in the world as well.
Introducing Bitcoin to the Platform
The CEO and founder of Aave, Stani Kulechov, has affirmed that Bitcoin has a market cap of over 50 million USD, so introducing this new asset will be very important for the platform in order to reach more people.
According to him, for the first time a crypto lending company will let the borrowers propose their own interest rates instead of using fixed values, which will make the market more competitive.
The CEO believes that by providing the option for the investors to use Bitcoin, the company can be more transparent and competitive in the market and that the team is excited about the prospects of using helping to create a global Bitcoin lending space in the market with the company.
This only a step on the company’s road for expansion. Aave has been recently approved to receive two regulatory licenses in Estonia, which will allow the company to enter the European market and to convert crypto to fiat as well in the continent. With BTC and now EUR, the options that the users of the company will have will be increasingly vast.
Bear Market Was Good For The Lending Market
This expansion makes sense now as the crypto lending industry actually grew during the bear market. When the market is bad, people need money more often, so lending companies tend to be good for times like these. According to ETHLend, the company has generated a revenue of over $20 million USD last year despite the fall in prices.
Now it remains to be seen whether the company will continue to achieve this high level of profit when the bear market finally ends or if it will only be so successful while the other companies are not.