PRESS RELEASE. CEX.IO LOAN is facing massive institutional demand for its crypto-backed lending service, with 41% of customers asking to borrow cash against Bitcoin, 53% against Ethereum and 6% against DeFi tokens.
Lending service with crypto support CEX.IO LOAN launched in October 2020 in select global jurisdictions, has experienced high demand and has received more than $ 100 million in loan requests to date. While the service is very popular among retail investors, most loan requests came from the platform from institutional investors.
According to CEX.IO LOAN, such an increase in demand can be attributed to the institutionalization of the cryptocurrency industry. Institutional investors who hold cryptocurrencies view it as a potential collateral for borrowing money and actively use it. The borrowed money is then used for further investment purposes.
In addition to the very latest security and advanced anti-fraud measures, CEX.IO Group operates a regulated service, which has been licensed as a Distributed Ledger Technology (DLT) provider since last year by the Gibraltar Financial Service Commission (GFSC). In addition, the Government of Gibraltar recently awarded CEX.IO Limited a Money Lender License, allowing the company to expand its ecosystem of regulated services with CEX.IO LOAN.
Institutional clients also prefer the company’s digital asset-backed lending service for the convenience offered to its users. On the CEX.IO LOAN platform, customers can quickly and easily borrow cash against their cryptocurrency assets, without having to deal with credit checks or unnecessary paperwork. To access the company’s instant crypto-backed lending service, new users must open an account with the digital asset exchange and pass the mandatory Know Your Customer (KYC) and AML checks.
CEX.IO LOAN serves a variety of cryptocurrency market participants, from retail investors, traders and HODLers to startups, entrepreneurs and large corporations. As part of a flexible lending service with crypto support, users can borrow any amount between $ 500 and $ 100,000 at competitive interest rates starting at 8.75% per year. The term of the loan varies from seven days to a year.
Currently, retail users can borrow money against their Bitcoin (BTC) or Ethereum (ETH) resources. Based on the company’s data, the feature has already met high demand from VIP customers, with 41% of all CEX.IO LOAN customers borrowing cash against Bitcoin (BTC), 53% against Ethereum (ETH) and 6% against DeFi tokens.
The company recently introduced a VIP exclusive feature to provide flexible loan terms and the ability to use decentralized financial (DeFi) tokens as collateral for institutional clients on the crypto-backed lending platform.
In order to best serve institutional clients, VIP clients’ requests and queries are handled individually by dedicated personal managers on the CEX.IO LOAN platform. Interestingly, that’s 14% of it CEX.IO VIP customers have already asked their personal managers about lending money through the crypto-backed lending service.
“As institutional investors find the digital asset industry increasingly attractive, it is a pleasure to serve them with our enterprise-grade instant crypto-backed lending platform. Security, convenience and compliance are the top priorities for enterprise customers, these are features we provide to all our customers in the fast growing CEX.IO ecosystem. Most importantly, we want to provide the best service to institutional customers. That’s why VIP customers enjoy exclusive benefits, such as dedicated personal managers and flexible credit options, on the CEX.IO LOAN platform, ”said Anton Chashchin, Commercial Director of the CEX.IO LOAN service.
In the announcement, the company disclosed further details about the size of the funds that customers are borrowing on the CEX.IO LOAN platform. Based on the company’s data, while retail investors borrow an average of $ 1,400, VIP clients are asking for larger loans that vary in size, typically amounting to $ 1 million or higher.
Institutional clients not only borrow more, but also need the money for longer periods, usually between 6 and 12 months. According to the company, this phenomenon indicates a long-term strategy for VIP clients to manage their assets.
About CEX.IO LOAN
CEX.IO LOAN is part of the CEX.IO Group, with this service provided by CEX.IO Limited, Gibraltar. Founded in 2013, CEX.IO operates one of the largest international exchanges of the cryptocurrency market, which is included in the top ten exchange services from Crypto Compare and Coin Metrics’ trusted service providers. With a multifunctional exchange of digital assets, CEX.IO serves more than 3 million clients worldwide with a team of more than 250 professionals and offices in the UK, US, Ukraine, Cyprus and Gibraltar. From novice cryptocurrency users to professional traders, as well as institutions and businesses, CEX.IO meets the needs of various crypto market participants with a reliable, high-security digital asset service.
CEX.IO Group has been expanding its ecosystem with new solutions for years, including the B2B fiat-to-crypto exchange solution CEX.IO Direct, the technical solution for liquidity aggregation CEX.IO Aggregator, an authentication and compliance platform Identity and an eviction service CEX.IO Strike.
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