Indian Bitcoin Exchange, Coindcx, Starts New Crypto Asset Lending Program Dcxlend
Recently Indian crypto exchange Coindcx announced that they are launching their crypto-lending program called Dcxlend. The beta phase will support 5 different cryptos supported by the program, namely: Bitcoin [BTC], USD Tether [USDT], Ethereum [ETH], XRP and Binance Coin [BNB].
— CoinDCX: Crypto Exchange (@coindcx) March 20, 2019
CoinDCX is an aggregator of cryptocurrency trading services. The platform claims to have
“versatile financial instruments and deep order books targeting a variety of trading use-cases”.
The startup says it currently has 50,000 users and processes about a million dollars of average trading volume every day.
CoinDCX CEO Sumit Gupta said:
“You can margin trade in 200+ markets with leverage, buy crypto with fiat currencies and, starting soon, even trade in crypto derivatives – all on highly liquid markets! CoinDCX aims to empower investors by providing a single point of access to a complete crypto ecosystem.”
The exchange’s website currently displays monthly interest rates of 2 percent for BTC, 1 percent for USDT, 1 percent for BNB, 0.75 percent for XRP, and 0.75 percent for ETH. Gupta said that BTC has the highest interest rate because their traders mostly do margin trading in BTC markets, hence there is a high demand for BTC lenders.
There are 3 different lending terms; 7 days, 15 days, and 30 days. The interest rates will fluctuate according to market dynamics. Their website states that
“the cryptocurrencies lent through Dcxlend will be used to provide leverage to users on Dcxmargin.”
The company has 120 lenders which have led to a circulation of 170 BTC daily.
The CEO further said:
“Funds are then lent to the users only when the margin trade is open, with no withdrawal access and hard liquidation with 7.5% maintenance margin.”
Venture capital company Bain Capital Ventures recently led CoinDCX’s seed round. Other renowned angel investors who took part in the round included Utsav Somani (Partner, AngelList India), Jatin Aneja (Partner at India’s Leading Law Firm), Sung Ho Choi (Founder, Fubo TV), Sanjay Mehta (Mehta Ventures) and blockchain investors like Rafael Ugolini and Karn Nagpal.
Noticeably, on 25 February, the Supreme Court had issued a directive during a hearing in a case between India’s virtual currency exchanges and the government that the center should clarify its stance on crypto-currencies. All financial institutions, including banks, non-bank lenders, digital wallets and others, were prohibited by the RBI, from providing any services to entities dealing with cryptocurrencies in April last year.