Borrow crypto lending service from Blockchain.com is the latest entrant in the growing virtual currency loans sector. Interestingly, the service will be available to the platform’s individual retail users besides the institutional clients. Initially, only Paxos (PAX) loans against Bitcoin (BTC) will be on offer via the platform’s local wallet.
Earlier, Blockchain.com crypto loans were available only to businesses. However, as the cryptocurrency loans are getting increasingly popular, the demand from retail users is rising manifold. The Borrow crypto lending service will be offered in 180 countries.
Borrow crypto lending service to start with Paxos Bitcoin loan pair
The latest crypto loans player, Borrow, will start operations with Paxos-Bitcoin pair. Once established, Blockchain.com plans to bring in more loan pairs into the product portfolio. Paxos is a prominent Ethereum-based stablecoin pegged to the U.S. dollar in a 1:1 ratio. It boasts of the highest circulation after Tether (USDT). Currently, PAX market capitalization stands at $266 million.
Blockchain.com co-founder, Peter Smith, said that Borrow will help expand the company’s services portfolio. They will be able to implement trading and investment strategies akin to institutional investors through the Borrow crypto lending service.
Retail users will now have access to institutional-grade liquidity through cryptocurrency loans. Borrow crypto lending service aims to resolve the liquidity crunch in the virtual currency trading realm. Peter added that there is a wide disparity in the quality of trading tools available to individual and institutional traders. Borrow aims to address this shortcoming and bring both types of traders on the same page.
Rise of the crypto lending industry
As the world acclimatizes to the crypto sector, virtual currency loans are gaining popularity. Blockchain.com crypto loans are a step in this direction. Borrow crypto lending service that aims to tap into the growing crypto loans market by targeting retail investors. Recently, BitGo also launched crypto loans for institutional clients. Celsius Network also has a similar product portfolio.
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