The crypto exchange operator and full digital assets financial services company Diginex has announced that it is expanding its product suite to add borrowing and lending facilities.
The technology will allow Diginex customers to lend and earn interest on their Bitcoin assets and ETH, which is the asset of the Ethereum network, as well as borrow these cryptocurrencies against their existing crypto holdings.
The crypto borrowing and lending market has grown tenfold over the past 12 months. In 2020, crypto-backed loan volumes rose to $10 billion from just $1bn in 2019, driven by increased investment activity from institutions.
The market for yield enhancement opportunities for crypto assets has expanded as hedge funds and institutional investors look for facilities which will allow them to earn an additional return on their crypto holdings and to enable margin trading.
Borrowing and Lending provides yield to this asset class and a necessary hedge for derivative and volatility traders as we continue to expedite the growth of crypto derivatives. We look forward to completing the integration of this institutional grade technology.
Thе announcement for new borrowing and lending capabilities follows Diginex’s listing on October 1st, becoming the first Nasdaq listed company with a cryptocurrency exchange. It also underscores the company’s commitment to providing a full suite of digital asset financial services products to institutional and professional investors.
The new integrated borrowing and lending platform will manage the entire lending lifecycle, actively managing collateral throughout the term and is a solution to providing efficient and liquid markets.
The technology will integrate with Diginex’s ecosystem to provide licensed borrowing and lending capabilities, subject to regulatory approvals.
The new capability to borrow and lend on the platform is essential to Diginex’s customer base of professional traders. It will complement the planned suite of derivatives and trading tools such as cross collateralization, portfolio margining and capital efficiency products that are being rolled out.
Shane Edwards, Head of Investment Products at Diginex, said:
Shane Edwards Source: LinkedIn
With interest rates at historic lows there has never been a better time to offer crypto borrowing and lending. We are excited to unveil truly differentiated products with uniquely attractive risk return characteristics, unmatched in the traditional marketplace.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.