Nexo, the Switzerland based fiat lending platform, announced that they will start accepting Bitcoin Cash [BCH] as a form of collateral. BCH holders will be able to stake their cryptocurrency as collateral and obtain instant funding in more than 40 fiat currencies.
Nexo has been expanding rapidly. It recently added Ripple’s XRP and has now confirmed support for bitcoin cash and litecoin. These coins will join BTC, ETH, BNB, and NEXO, granting cryptocurrency holders the ability to borrow anywhere from $1,000 to $2 million.
Preliminary results from the poll show strong support for Bitcoin Cash (BCH). Meeting @rogerkver in Tbilisi was a great opportunity to announce the upcoming addition of BCH as a collateral option for Nexo's crypto-backed loans! Check out the interview here https://t.co/4igDQ1q6It https://t.co/mewu2nY3QL
— Nexo (@NexoFinance) September 24, 2018
Borrowers can obtain credit from 8%APR with no minimum loan repayments. Nexo has also developed an alliance with Coinmarketcap, permitting visitors to the market data site to start the process by clicking the “Get Loan” button alongside cryptocurrencies such as BCH and BTC.
Crypto Based Loan Platform Gaining Traction
Cryptocurrency enthusiasts have a surplus of lending options available. On Oct. 19, Salt added support for dogecoin, while platforms such as Ethlend and Celsius Network have also been gaining traction.
Crypto loans have a range of uses, including the requirement of short-term funding for hedge funds that have invested in cryptos and need to obtain capital for new investment possibilities.
Nexo’s crypto-fiat lending service has also attracted cryptocurrency miners attempting to cover hardware expenses, as well as investors who wish to take out loans to buy more cryptos in the belief that they will rise in value, so they can profit without selling their existing holdings.
The company’s choice to add XRP, bitcoin cash and litecoin seems to have been influenced, in part, by a community vote that indicated a strong desire for the coins. The lending platform is currently finalizing BCH wallet integration before its bitcoin cash lending service goes live in a few weeks’ time.