Indian Cryptocurrency Exchange Launches New Lending Program In Virtual Currencies
Coindcx, a recognized Indian cryptocurrency exchange, has launched a new program that allows users to earn interest on their digital assets that they hold on the exchange. There are five virtual currencies that will be supported by the platform, including Bitcoin (BTC), Binance Coin (BNB), XRP and Ethereum (ETH).
Crypto Exchange Launches New Lending Program
Coindcx will allow users to earn interest on the virtual currencies users lend to the exchange. There will be monthly interest rates of 2 percent for Bitcoin, 1 percent for Tether, 1 percent for Binance Coin, 0.75 percent for XRP, and 0.75 percent for Ethereum. The information was released by news.bitcoin.com a few days ago.
The CEO of the crypto exchange, Sumit Gupta, said that Bitcoin has the highest interest rate because traders do margin trading using Bitcoin. There are different lending terms for users that want to lend their digital assets: seven, fifteen and thirty days. The rate goes up to 2% depending on the days lent. In this way, Dcxlend will provide leverage to users on Dcxmargin.
As per Gupta, they tested the lending network using Bitcoin and Tether. They had 120 lenders that allowed them to provide 170 BTC on a daily basis. In the future, the intention is to increase the number of coins supported for users to lend them.
The CEO of the exchange has also mentioned that they have an internal settlement and liquidation mechanism for margin trading that does not have a “dedicated funding wallet.”
There are several programs in different exchanges that allow users to lend their digital assets and receive interest on it. In Japan, for example, GMO Coin launched a lending program that allows users to lend different digital currencies, including Bitcoin, Bitcoin Cash (BCH), Ethereum, Litecoin (LTC) and XRP.
Bitbank is another regulated exchange located in Japan that offers up to 5 percent annually for individuals that lend their digital assets.