Bitget, a famous crypto-exchange, has entered the “crypto lending” sector with the launch of its new product: Crypto Loans.
Bitget and the launch of Crypto Loans: the new entry into the “cryptocurrency lending” sector
The famous crypto-exchange Bitget has decided to enter the “cryptocurrency lending” sector as well by launching its new product: Crypto Loans.
Bitget has distinguished itself in the crypto market by offering both copy-trading and crypto-derivatives services, and now it is time to pander to the growing demand in the lending sector.
And indeed, the new service aims to attract a new audience of users deterred by traditional lenders, who are looking for alternative means of financing through digital assets.
Bitget’s Crypto Loans is based on a dual-coin approach, which allows users to stake one coin of their assets as collateral in exchange for the ability to borrow a corresponding amount in another coin.
Each loan is issued at a specific interest rate, and the amount borrowed is determined by the market value of the collateral.
Loans are issued within a predetermined period; users can choose to repay earlier or at the predetermined maturity.
Bitget to meet growing demand for crypto loans
According to the Global Market Insights report, it appears that traditional loan users, may soon be onboarding in the “digital lending” (or digital loans) sector.
This means that the adoption of solutions such as Bitget’s new signature product, could play a crucial role.
Not only that, cryptocurrency lending has come to attention in recent years due to the overall growth of the digital lending industry, which exceeded $8.5 billion in 2022 and is expected to grow at a CAGR of 20.5% from 2023 to 2032.
In this regard, Gracy Chen, Managing Director, of Bitget said:
“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.”
In practice, Crypto Loans is designed both to facilitate user entry, but also to replicate the familiar procedures found in traditional loans. The first step involves posting collateral, followed by automatic disbursement of the loan amount, ensuring an easy and efficient experience for borrowers.
After receiving the loan, users will have the flexibility to use the funds as needed, as well as to modify the guarantee by adding or removing funds according to their individual needs.
Partnerships in the eSport sector
Recently, Bitget has also been in the news for its fourth partnership in the eSport sector.
This is the crypto-exchange’s presence as the official sponsor of the DOTA 2 Bali Major, which will be held from 29 June to 9 July 2023.
This partnership comes after sponsorships with PGL Major Stockholm 2021, PGL Major Antwerp 2022, and PGL DOTA 2 Major Arlington 2022.
Not only that, Bitget has always supported industry leaders, such as its partnership with legendary soccer player Lionel Messi. And speaking of Messi, in honor of his birthday, Bitget has raffled off the soccer star’s merch for the lucky ten.
The performance of the CEX after the FTX collapse
According to Nansen‘s report on the performance of centralized crypto-exchanges (or CEXs), in the first half of 2023, Bitget seems to stand out in terms of its numbers.
Indeed, on the one hand, the crypto-exchange saw a sharp increase in its derivatives volume, while BGB, its native token, also saw a price pump after FTX’s collapse.
Not surprisingly, as of June 2023, BGB has risen in price by +300%, from $0.18 to $0.47. At the time of writing, BGB is worth $0.48.
When it comes to copy-trading, Bitget ranks among the top-performing crypto platforms as well, along with ByBit, OKX, and Gate.io.