Bitget Launches Crypto Loan Products to Tap into Growing Lending Market
Summary: Bitget is launching its Crypto Loans product to provide consumers with alternative financing options. The dual-coin strategy allows borrowers to borrow in one cryptocurrency while staking another as collateral. It simplifies the loan procedure, and allows for automatic distribution at a predetermined interest rate.
Bitget, a platform for crypto derivatives and copy trading, is expanding into the cryptocurrency lending market with the launch of its Crypto Loans product. According to a statement, Bitget intends to attract consumers who are unhappy with conventional financial institutions by providing them with a cryptocurrency-based alternative financing option.
Its Crypto Loans offering has a dual-coin strategy, with borrowers able to borrow in one cryptocurrency while staking another as collateral.
According to a survey by Global Market Insights, the digital lending business as a whole surpassed $8.5 billion in 2022, growing at a compound annual growth rate of 20.5%. This, according to Bitget, is why crypto loans have become more popular in recent years.
Rough Year for Crypto Lending Sector
It was a rough year for centralized crypto lending businesses in 2022, with notable failures including Celsius, BlockFi, and Voyager Digital, all of which had a substantial impact on the crypto lending industry. The level of confidence that consumers will have in such services in the future is still up in the air.
Bitget claims to have simplified the loan procedure by modelling it after one more often used in conventional finance. Automatically distributed at a predetermined interest rate, the loan amount is based on the current market value of the asset posted as collateral.
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Borrowers are free to spend or restructure the collateral on the funds as they see fit. The loan may be paid back by the user at any time before or on the agreed upon due date. Bitget also claimed that facilitating withdrawals and providing a quick approval procedure for loan applications will entice people to sign up.