The cryptocurrency lending industry has been viral in the cryptonews for some time, and there are a couple of new announcements to watch out for. As we can see, another major crypto company is getting into the business. Today, BitGo officially launches its first institutional crypto lending service which is a debut that comes after several-month long private beta test.
For those of you who don’t know, BitGo is a firm that claims to handle over 20% of the Bitcoin (BTC) transactions. Nick Carmi, who is the head of financial services at the company, recently emphasized that the new crypto lending product was developed with the goal of creating a lending business that is similar to lending services in the traditional financial markets.
As the executive noted, BitGo officially launches this service and it is already a part of the company’s sustainable business model:
“We are not interested in a high-volume, low-margin business; we are building deep relationships with our clients to drive value for them and to create a long term, sustainable business,” Carmi said.
The major features of BitGo’s lending offering include customized and detailed reporting, fully collateralized loans and the ability to work with the regulated custodian BitGo Trust, as the team announced.
Now that BitGo officially launches the new offering, we can safely say that the company is continuing to develop its services in order to attract more users. The head of finance, Nick Carmi, is also a Wall Street veteran who joined the company in May 2019. He recently spoke to the media and was featured in the Bitcoin news for saying that the new lending service is a first for the company – and that BitGo is focused on the institutional market and doesn’t have plans to make the product available to non-institutional traders.
Carmi also said that the institutional lending service can support over 15 different currencies such as Bitcoin (BTC), Ether (ETH) as well as fiat coins.
“We started our lending with BTC, and very rapidly expanded into other cryptocurrencies such as ETH, LTC, BSH, DASH, stablecoin and fiat. Bitgo’s lending services can support over 15 different coins. All of our loans are collateralized, some at above 100% and others at below depending on the coins, the term and the counterparty credit.”
The CEO of the company, Mike Belshe, added that the new lending service is “melding the best” of Wall Street expertise and Silicon Valley’s tech and innovation.
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