Wallet Provider Blockchain.com Rolls Out Crypto Lending; Borrow Against BTC Holdings
The exchange and cryptocurrency wallet provider Blockchain.com announces that it’s going to allow its users to borrow against their crypto holdings in a new service dubbed ‘Borrow.'
The news about the Borrow service was released on Tuesday. Blockchain.com said it’s going to provide US dollar-denominated stablecoins loans against holdings of Bitcoin (BTC) from its Blockchain wallet. The company also mentioned that loans will be open to wallet holders from all over the world, with the loans being made available as soon as the collateral becomes available.
No Stablecoins for the Loans Mentioned Yet
Blockchain didn’t specifically mention which stablecoins will be available as part of the service, but last year, it added the US dollar-pegged Paxos Standard (PAX) stablecoin. Borrow is a product that comes out soon after the company has opened in August last year its institutional lending desk, a service that met $10 million in originations during its first month of functioning, and $120 million by the month of November 2019.
Here’s what the CEO and co-founder of Blockchain, Peter Smith, had to say about Borrow:
“Institutional and retail investors have the same financial goals – grow wealth and manage risks – but the tools at their disposal are vastly different. Now, with our suite of trading products and Borrow, retail users can trade like the big guys without selling the crypto they’ve stockpiled or leaving their Wallet.”
Lending Has Grown Very Fast in the Crypto Industry
Lending became one of the fastest-growing sectors in the crypto space, seeing the rivals of Blockchain, Binance included, have already introduced similar services into the industry.
The crypto companies BitGo and Babel have announced they had loans of $150 million and respectively $390 million until now. Investors have their eye on the crypto lending space’s potential too.
The BTC and Ether (ETH) loans company BlockFi has raised more than $48 million in 2 funding rounds from 2019 and 2020. In the past, Blockchain has provided its blockchain data streams and wallet only, but in July 2019, it launched The Pit crypto exchange service.