CEX.IO set to provide instant crypto-backed lending service
The international exchange company is looking to launch a digital asset-backed lending service of up to $500,000 this month.
According to the company, the service will be available in 217 countries– including the European Union, Australia, the United Kingdom, and several other nations in Asia. The provision and issuance of these loans will be promoted by a multimillion-dollar liquidity pool.
The service (CEX.IO loan) will introduce changes in the crypto space by allowing users to borrow funds against their digital assets. The process will only take a short while as it won’t involve other standard loan processes such as credit checks.
CEX.IO loan will also be flexible allowing customers to decide the size of a loan they want to take out and its term. Customers can borrow a loan between $500 and $500,000 with a duration of 1 week to 1 year. Larger loans with lengthy duration will typically have smaller interest rates.
To qualify for the loan, users must first deposit cryptocurrency into their accounts. The crypto serves as collateral for a loan. The currently supported crypto coins are Bitcoin and Ethereum with a 50% Loan-to-Value (LTV) ratio.
Registered and verified customers will receive their loans almost instantly after their application is processed. New clients will first need to register an account with the UK-based exchange CEX.IO, complete a KYC procedure and then submit their request.
The loan amount is directly credited to the user’s account upon successful application and approval. Depending on the linked payment methods, one can choose to withdraw the funds to a bank account or even card. An individual can also decide to use the loan to trade cryptos on the CEX.IO platform.
A statement by Anton Chashchin, the loan service’s Commercial Director read, “Our clients are a vibrant and diverse group of market participants, whose needs evolve with the industry. We aspire to provide our clients with capital that helps them capture opportunities coming their way.”
“Our loans offer that extra boost, which traders, investors, startups, and entrepreneurs in general, need, while they can still benefit from the potential appreciation of assets they own,” added Chashchin.
CEX.IO recoups the deposited digital asset collateral as soon as the borrower clears the loan i.e. the principal amount and accrued interest.
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Sam Grant, Khareem Sudlow