Japanese Financial Giant SBI Launches Bitcoin Lending Service
With Bitcoin just 5% from its 2017 ATH price, Japanese financial service giant SBI Holding has launched a Bitcoin lending service.
Starting with just Bitcoin (BTC), SBI said it plans to include other major crypto assets like Ethereum (ETH) and Ripple (XRP), the official announcement revealed. The company disclosed that the lending service would also feature more trading opportunities, as SBI explores the crypto space.
The new lending service dubbed VCTRADE LENDING will be available on SBI VC Trade, the company’s cryptocurrency exchange. Customers will be able to lend out their BTC holdings to the company and earn interest over a lending period of 84 days. According to the company, the minimum lending amount is 0.1 BTC, with the maximum pegged at 5 BTC.
Lenders will earn a usage fee for an annual rate of 1%. This means users will receive a 1% interest annually on deposited coins with tax included for a lending period of 84 days. The company also plans to extend the service to include other crypto assets aside from ETH and XRP.
Additionally, using VC TRADE Lending will attract zero account management fees, membership fees, or annual membership dues. The service will also not include any fee for the transfer of lending amount, including sending or deposit made in cryptocurrencies and Japanese Yen. However, SBI notes that withdrawing Yen would attract charges.
SBI Exploring Crypto
SBI is an active player in the cryptosphere. Despite having its own digital asset exchange, SBI acquired the crypto exchange TaoTao last month.
Earlier this year, SBI found its way into the crypto mining sector through a partnership with Japanese internet giant GMO Internet Inc and Whinstone Inc., a subsidiary of Northern Bitcoin AG, owner of the world’s largest mine.
SBI also has a long-standing relationship with blockchain company Ripple. Both companies became partners in 2016 via a joint venture dubbed SBI Ripple Asia. The venture was launched to promote XRP usage in the Asian financial market.