If you are familiar with the crypto lending industry, then a mere mention of Celsius Network ought to automatically ring a bell in your mind. The platform is hitting the headlines, having amassed a whopping $300 million in cryptocurrency deposits over the last 12 months.
Celsius Network allows BTC and other Altcoin holders to either deposit their coins in exchange for interest or take a loan with their coins as collateral. And over the past year, the Network handled and completed an incredible $2 billion worth of loan origination in cryptocurrencies.
It’s Arguably The Fastest-Growing Lender
Celsius Network started operating in July 2018, operating in a modest, burgeoning crypto lending sector. Yet, a year later, the lender has initiated over $2.2 billion in digital asset-secured loans and attracted over $300 million AUM tokens in deposits.
Collectively, Celsius boasts of more than 160,000 loans in cryptocurrencies and has also disbursed more than $3 million to depositors in interests. All these are according to a Press Release published just recently by the platform.
Besides earning interests from their deposits, customers entrusting their coins with Celsius Network also earn whenever they move their assets to their respective Celsius Wallet. They basically earn the interest upon borrowing USD using their digital currencies as a security for the loan.
Apparently, Celsius Network paid out more in Bitcoin and Ethereum to its customers compared to any other lender. It gave out up to 80% of the revenues earned to depositors, unlike the global exchange giant, Binance BNB, which only returned 20% of its earnings and Nexo’s 30% in dividends.
Cryptocurrency Lending Seems To Be Gaining Traction
This data from Celsius Network, however, paints a clear picture of the vibrancy of the crypto lending space. It shows the reason why digital asset lenders are slowly gaining traction.
In September 2018, Celsius was appointed to manage the UN’s Sustainable Development Goals Impact Fund (SDG Impact Fund) initiative. Out of this, the crypto lender has gone ahead to collaborate with Fifth Element, all in a bid to provide banking services that are exclusive to top tier crypto holders. The project dubbed “bring power back to the people” had never happened before.
Meanwhile, the co-founder of Bitmain, who also happens to be its former CEO, Wu Jihan, is set to rival Celsius Network. He has just launched a cryptocurrency trading portal called Matrixport. Matrixport will reportedly deal in Over-The-Counter (OTC) trading, lending and custodial services.