The cryptocurrency
trading platform , Bitget, has launched a new product ‘Crypto Loans’ in response
to the growing demand for digital lending solutions. This venture is expected
to appeal to those users who have been discouraged by the credit offerings of
traditional banks.
Bitget’s
Crypto Loans product adopts a dual-coin strategy, where users stake one
cryptocurrency from their holdings as collateral to borrow an equivalent amount
in another digital asset. The loan is issued at a specific interest rate, with
the borrowed sum dictated by the market value of the pledged collateral. Users
have the flexibility to repay their loans either before or at the determined
deadline.
Digital
lending, particularly in the crypto domain, has sharply risen in recent years. According
to Global Market Insights, the sector exceeded $8.5 billion in 2022 and is
projected to grow at a CAGR of 20.5% from 2023 to 2032.
“Bitget’s
new product highlights the flexibility of collateralized currency usage,
enhancing capital utilization,” Gracy Chen, the Managing Director of Bitget,
commented.
According
to Chen, users now have the opportunity to stake less-demanded coins, enabling
them to obtain loans in more…
