- The exchange announced the innovation on July 4
- The interest on the loan and its term is determined depending on the collateral
The cryptocurrency exchange Bitget announced today, July 4, the launch of a new financial instrument on the platform – cryptocurrency loans. The company said it would meet the growing demand among investors for alternative sources of capital.
The service works quite simply. The user pledges a certain amount of one cryptocurrency, and then receives a corresponding amount of the other.
The available loan amount is determined by the market value of the pledge. The interest rate also varies depending on the asset. The loans are for a fixed term with early repayment options.
In its press release, Bitget cited increased demand in this segment. In 2022, the market capitalization of cryptocurrency loans was $8.5 billion.
According to various experts, by 2032 this figure will increase by 20.5%.. Bitget, in turn, aims to meet this demand and provide traders with additional fundraising opportunities.
“Users now have the ability to stack less sought after coins while borrowing in more liquid assets for investment purposes. Our platform’s flexible borrowing and repayment mechanism is designed to meet the needs of all users,” said Gracie Chen, Managing Director of Bitget.
We previously reported that Bitget is the official cryptocurrency partner of the Bali Major 2023 Dota 2 tournament.. Подробности: