- Borrowers may get a loan in one cryptocurrency while staking another as collateral.
- The borrower may repay the loan at any time before or on the end date.
Bitget has launched a Crypto Loans product to enter the cryptocurrency lending sector. The platform plans to provide a crypto-based alternative financing option, as said in a statement, in an effort to win over customers who are dissatisfied with traditional financial institutions.
It utilizes a dual-coin strategy to streamline the lending process. Borrowers may get a loan in one cryptocurrency while staking another as collateral via its Crypto Loans product.
Global Market Insights estimates that by 2022, the digital lending industry will be worth more than $8.5 billion, expanding at a CAGR of 20.5%. Also, Bitget claims this is the reason why the demand for crypto loans has grown in recent years.
Furthermore, centralized crypto lending enterprises had a hard year in 2022, with many high-profile collapses that had a major influence on the sector. These included Celsius, BlockFi, and Voyager Digital.
Tempting Users to Join
Bitget claims that it has streamlined the lending process by making use of a format more often used in traditional finance. The collateral value is used to calculate how much of a loan may be disbursed at a fixed interest rate.
Moreover, the money and collateral are completely at the discretion of the borrower. The borrower may repay the loan at any time before or on the end date. Bitget also said that its streamlined loan application and withdrawal processes would tempt users to join up.
BitGet’s managing director Gracy Chen has remarked that the company’s lending program makes it possible for cryptocurrency holders to diversify their holdings.
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