- The exchange announced the innovation on July 4
- Interest on the loan and its term are determined depending on the collateral
Today, July 4, the Bitget cryptocurrency exchange announced the launch of a new financial instrument on the platform — loans in cryptocurrency. The company noted that this will meet the growing demand among investors for alternative sources of capital raising.
The service works quite simply. The user deposits a certain amount in one cryptocurrency as collateral, after which he receives the corresponding amount of another.
The available loan amount is determined by the market value of the collateral. The interest rate also varies depending on the asset. Loans are issued for a fixed period with the possibility of early repayment.
In its press release, Bitget referred to increased demand in this segment. In 2022, the capitalization of the cryptocurrency loan market was $8.5 billion.
By forecasts different experts, by 2032 this figure will increase by 20.5%. Bitget, in turn, seeks to meet this demand and provide traders with additional opportunities to accumulate funds.
“Users now have the ability to stake less demanded coins while borrowing in more liquid assets for investment purposes. The flexible borrowing and redemption mechanism of our platform is designed to meet the needs of all users.” — said Gracie Chen, managing director of Bitget.
We previously reported that Bitget became the official cryptocurrency partner of the Bali Major 2023 Dota 2 tournament. Details: