Wallet Users Can Now Borrow USD with Their Crypto Holdings

News / 11.03.2020

The crypto wallet and exchange provider, has announced that it will now enable users to borrow against their holdings.

The firm announced this new service on Tuesday, that it will offer loans in US Dollar-denominated stablecoins against holdings of Bitcoin in the Blockchain Wallet. The “Borrow” service is open to all wallet holders worldwide, and the loans are readily available immediately after collateral is made available.

Although the announcement didn’t specify which of the numerous stablecoins the loans would be paid out in, it would likely be the PAX stablecoin. This is because, the firm added the Dollar-pegged PAX stablecoin to its wallet just last year.

According to the co-founder and CEO of Blockchain, Peter Smith, institutional and retail investors have a common financial goal of growing wealth and managing risks. However, according to Smith, the tools at the disposal of each of them are vastly different. Smith added that, with their current suite of trading products and Borrow, retail users can also trade like the big players without necessarily selling their crypto holdings or leaving their wallet.

The firm claims it takes just a few clicks to go for user to set up a loan to receiving their USD-denominated stablecoin. It added that whatever users do in their wallet is entirely their choice since they own the keys to their wallets.

Featured image courtesy of Shutterstock. Source: Cryptopress.

Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.