The renowned crypto firm, CEX.IO has announced that it will launch crypto-backed loan services on its platform before the end of September.
According to the popular crypto exchange platform, the new crypto-backed loan services would just be made available to its client base in about 17 countries and territories. The countries to benefit from this new feature are the United States and the United Kingdom as well as a couple of countries across Asia. With the new feature, clients on the platform who reside in the countries supported would be allowed to borrow funds against their holdings without a need to pass any credit check test.
Clients are allowed to lend any amount and can pay back at any time
To ease flexibility on the part of its clients, CEX.IO has announced that the crypto-backed loan services would allow its clients to take out any amount of loan and repay at the duration that is convenient with them.
Furthermore, the crypto exchange said its clients would be able to get loans ranging from $500 up to $500,000 with a repayment plan scheduled to be between one week to a year. CEX.IO also noted that the interest rates enjoyed on the loan would solely depend on how large it is and the payment duration.
New clients need to complete KYC to be eligible for crypto-backed loan services
To facilitate the crypto-backed loan services, CEX.IO has employed the services of a liquidity pool that boasts of a multi-million dollar which has been in use by the crypto exchange. To gain access to the loans on the platform, clients need to have a tangible amount of funds in their account that will be used as collateral.
Furthermore, the firm has announced that they can only lend Bitcoin and Ethereum to its clients and has promised them a massive Loan To Value (LTV) ratio of around 50%. To make the loan process easy, new customers are required to undergo KYC while already verified users can gain access provided they fulfill the deposit condition.