Bitget, top crypto derivatives and copy trading platform, has entered the rapidly expanding cryptocurrency loan sector with the launch of its native Crypto Loans product. The new offering is intended to attract a new audience of users dissuaded by traditional credit institutions and seeking alternative means of funding via digital assets.
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Bitget’s Crypto Loans product is based on a dual-coin approach, allowing users to stake one coin from their holdings as collateral in exchange for the ability to borrow a corresponding amount in another coin. Each loan is issued at a specific interest rate to pay, with the borrowed amount determined by the market value of the staked collateral. The loans are issued within a predetermined period, users can choose to repay before or at the predetermined deadline.
Crypto loans have been gaining attention in recent years thanks to the overall growth of the digital lending sector, which surpassed the $8.5 billion mark in 2022 and is predicted to grow by a CAGR of 20.5% from 2023 to 2032. The report by Global Market Insights highlights the increasing reliance on traditional lending and its potential to drive the demand for digital lending products. As this trend continues, the smooth onboarding of traditional users will play a crucial role in the adoption of these solutions.
With this in mind, Bitget has streamlined the loan process to not only facilitate user onboarding but also replicate the familiar procedures found in traditional financial institutions. The first step involves staking collateral, followed by the automatic disbursement of the loan amount, ensuring a user-friendly and efficient experience for borrowers. After the loan has been received, users will have the flexibility to utilize the funds as needed, as well as adjust the collateral by adding or withdrawing based on their circumstances or individual requirements.
“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,” Gracy Chen, Managing Director of Bitget.
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The platform also stresses the support for withdrawals and the swift review process on loan applications as selling points for the new product. Considering the high degree of security that Bitget boasts, as well as its market reputation as a reliable financial platform, users can be certain that security guarantees are in place and the safety of their collateral is ensured.
The Bitget exchange has been expanding its lineup of services in recent months, adding new products across a wide spectrum of cryptocurrency and traditional financial sectors. The recent investment in BitKeep and its subsequent rebranding into Bitget Wallet is one of the latest steps Bitget has undertaken to penetrate the Web3 space and create a single access gateway for users resorting to its ecosystem of products aimed at global crypto adoption.
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