Blockchain.com, the leading provider of cryptocurrency products including the most popular crypto wallet, has launched Borrow, a new product offering users, including users from Nigeria, to borrow USD-denominated stablecoins against crypto held in their Blockchain.com Wallet. In doing so, it becomes the first major cryptocurrency platform to offer lending directly to everyday consumers.
The launch follows Blockchain.com’s successful launch of an institutional lending desk last August, which has rapidly increased originations from $10M in the first month to $120M in November. By offering the retail market access to the same liquidity pool as institutional investors, the firm is addressing the shortage of USD on both sides of the crypto market.
“Institutional and retail investors have the same financial goals – grow wealth and manage risks – but the tools at their disposal are vastly different,” says Peter Smith, Co-founder, and CEO of Blockchain.com. “Now, with our suite of trading products and Borrow, retail users can trade like the big guys without selling the crypto they’ve stockpiled or left their Wallet.”
Starting today, users can borrow USD Digital stablecoins against bitcoin held in their Blockchain.com Wallet. As soon as the collateral is posted, users receive their loans and are free to use the coins however they see fit. To close a loan, users simply pay back the amount owed when it is convenient or aligns with their investment strategy. Borrow by Blockchain.com is currently available to all users across 180+ countries with the exception of the UK and Canada.
With the addition of Borrow within the Blockchain.com Wallet, the Company is further expanding the control that users have over their crypto and ways they can use it. In the last three months, the firm has launched payment gateways for the British Pound and Turkish Lira, completed an airdrop with Blockstack, launched an API for algorithmic traders, and expanded the asset offerings on the Blockchain.com Exchange to include popular crypto projects Algorand and DGLD.
How does it work?
Blockchain.com Borrow gives users the ability to borrow USD Digital (more currencies to come) whenever they want, using bitcoin stored in the Wallet as collateral. Here’s how it works.
To Start Borrowing:
All you need to start borrowing is to be Gold verified in the Blockchain.com Wallet (unfortunately, users in the United States, Canada, and the United Kingdom are not eligible for loans at this time). Go to the Borrow section of your Wallet (located in the left navigation in the web wallet) and input the amount of USD Digital you want to borrow. The maximum amount you can borrow based on your available collateral (your BTC balance) will be given here for your convenience. There are no limits on the term length of your borrow, but please note that, if you close your loan after less than 30 days, a month’s worth of interest will be deducted from your collateral balance.
Most lenders will pull borrowers’ credit score reports or other reports of borrowing history, which can have a negative effect on credit scores. Blockchain.com Borrow does not require credit, so taking out a loan with us will not affect your credit score.