Crypto Custodian, BitGo Launches its First Crypto Lending Business

News / 05.03.2020

BitGo, a crypto custody provider, announced on March 5 that it is launching an institutional-level crypto lending service. The new business dubbed “BitGo Prime LCC” will be a separate legal entity.

Nick Carmi, the head of financial Services at BitGo, explained that the new crypto lending platform was developed with the aim of creating a lending business similar to that of the traditional financial markets. He further noted that, this new product is part of BitGo’s sustainable business model.

He added that, the company is not actually interested in a high-volume, low margin business, but rather, to build a lasting relationship with its clients. Carmi told Cointelegraph that BitGo is focused on the institutional market and does not have plans to make the product available to non-institutional traders.

He further noted that the company’s institutional lending service can support more than 15 different currencies. These include cryptos such as Bitcoin, Ethereum, as well as stablecoins and fiat currencies.

Some key features of BitGo’s new lending platform include fully collateralized loans as well as customized and detailed reporting for each client. It also has the ability to work with regulated custodian BitGo Trust, the announcement reads.

Per the announcement, the lending service was built by a team of Wall Street investment specialist with a focus on institutional clients. Mike Belshe, BitGo CEO, claims the company’s lending service is synergizing the best of Wall Street expertise with institutional investors and Silicon Valley’s technology and innovation.

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.