Messi-backed Bitget joins crypto exchanges offering crypto loans

abdelaziz Fathi

Cryptocurrency derivatives exchange Bitget is the latest platform to roll out an in-house cryptocurrency lending service for its users.

The Seychelles-based exchange launched its native Crypto Loans product, delivering interest payouts to users that deposit cryptocurrency through the platform’s new offering. The service is touted to payout interest payments from lending pools, while lenders can deposit and redeem loaned tokens without lock-up periods.

Bitget said the new offering caters to a growing audience of users who may be hesitant to rely on traditional credit institutions and are instead interested in exploring alternative funding options using digital assets.

Bitget’s Crypto Loans product employs a “dual-coin” mechanism, enabling users to utilize one cryptocurrency from their holdings as collateral and borrow an equivalent value in a different coin of their choice.

When availing a loan through Bitget’s Crypto Loans, users stake a specific cryptocurrency as collateral, and the amount they can borrow is determined by the current market value of their staked asset. The loan carries a defined interest rate that users are required to repay within a predetermined timeframe. Users have the flexibility to choose whether they want to repay the loan before or at the agreed-upon deadline.

The dual-coin model of Bitget’s Crypto Loans product enables users to access liquidity while diversifying their portfolio. This approach is particularly appealing to investors seeking alternative means of funding and those who wish to maintain their exposure to multiple cryptocurrencies.

Meanwhile, borrowers on Bitget’s exchange can take out loans to tap into funds for various trading options on the platform. Borrowers must post an equal or greater market value of collateral assets in relation to the loan amount to safeguard lenders’ investments.

A statement from Gracy Chen, Managing Director of Bitget outlined the exchange’s intent to offer users a means to generate returns. “Bitget’s new product highlights the flexibility of collateralized currency usage, enhancing capital utilization. Users now have the opportunity to stake less-demanded coins, enabling them to obtain loans in more liquid assets for investment purposes. Our platform’s flexible borrowing and repayment mechanism is designed to cater to the needs of all users, accommodating their requests and ensuring convenience,” he added.

Bitget has unveiled a simplified loan process designed to enhance user onboarding and replicate the familiar procedures found in traditional financial institutions. The transaction begins with users staking collateral from their cryptocurrency holdings. Once staked, Bitget automatically disburses the loan funds to the borrower.

Additionally, borrowers can adjust their collateral positions during the loan duration, adding or withdrawing collateral based on their individual circumstances and requirements.

Bitget made headlines in October when it signed the world-renowned soccer player Lionel Messi to become its brand ambassador. Part of his responsibilities is to further introduce Bitget to users, brands, and to organizations worldwide.

Read this next

Digital Assets

TYRION Set To Decentralize The $377B Digital Advertising Industry

TYRION, a groundbreaking player in decentralized digital advertising, has launched its innovative blockchain-based platform aimed at disrupting an industry long dominated by centralized tech giants, by addressing issues like lack of transparency, data privacy, and declining ROI, while also offering features like social platform integration, robust analytics, and a deflationary mechanism for its native $TYRION token.

Institutional FX

TD Bank sells TD Cowen’s $1.3B business to Marex

London-headquartered commodities broker Marex has agreed to acquire TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Retail FX

ThinkMarkets reports flat revenues, lower profit for FY2022

The UK business of Melbourne-based broker, ThinkMarkets, today reported its financial results for the fiscal year ending December 31, 2022. The multi-asset platform, trading in the UK as TF Global Markets UK, had seen mixed results in a couple of key areas over a yearly basis.

Institutional FX

Finalto named best CFD Liquidity Provider at Ultimate Fintech Awards Global 2023

“This recognition is a testament to our commitment to providing exceptional liquidity services, innovative solutions, and outstanding customer support. We would like to express our sincere gratitude to our clients and partners for their trust and support. We will continue our efforts and look forward to delivering even greater value to our clients in the future.”

Digital Assets

New Cryptocurrency Meme Kombat ($MK) Launches Public Token Presale, Staking Platform

Meme Kombat, a new gaming platform blending the allure of internet memes with competitive battle arenas, has announced that the presale for its native $MK token is now live, offering a high APY of 112% and creating significant buzz in the crypto and Web3 communities.

Digital Assets

Hydranet Launches Layer 3 DEX: A Game Changer for Trustless Cross-Chain Trading

Hydranet has unveiled its groundbreaking Layer 3 trading platform, Hydranet DEX, that allows for near-instant, low-fee, and trustless cross-chain trading between Bitcoin and Ethereum ecosystems, marking a significant milestone in the project’s development journey.

Digital Assets

Coinbase gets nod to launch crypto services in Spain

Coinbase has scored Anti-Money Laundering (AML) compliance registration with Spain’s central bank as part of its continued expansion efforts in Europe.

Retail FX

Traders Union Experts Discuss London Session Forex Time In Nigeria

A recent report from Traders Union (TU) suggests that Nigerian Forex traders have a golden opportunity during the London Forex Session, highlighting the importance of time synchronization and strategic trading hours to optimize effectiveness in the rapidly growing Nigerian Forex market.

Retail FX

CMC Invest launches in Southeast Asia region to support long-term investing

“Following the successful application and granting of our full investment license from MAS (Capital Markets Services Licence) I am pleased and proud to announce the launch of our new investment platform business in Singapore.”