Press release. Encryption-backed loan service CEX.IO loan The program was launched in certain jurisdictions around the world in October 2020 and is currently experiencing huge demand, with loan requests worth more than US$100 million so far. Although the service is popular among retail investors, most of the loan requests on the platform come from institutional investors.
According to CEX.IO LOAN, this increase in demand can be attributed to the institutionalization of the cryptocurrency industry. Institutional investors who own cryptocurrency see it as potential collateral for borrowed funds and can therefore actively use it. The borrowed funds are then used for further investment purposes.
In addition to having the most advanced security and advanced anti-fraud measures, CEX.IO Group also operates a regulated service that has been licensed by the Gibraltar Financial Services Commission (GFSC) to provide distributed ledger technology (DLT) since last year Quotient. In addition, the Gibraltar government recently granted a money lender license to CEX.IO Limited, allowing the company to extend its regulated service ecosystem through CEX.IO loans.
Due to the convenience provided to users, institutional customers also prefer the company’s digital asset-backed loan service. On the CEX.IO LOAN platform, customers can quickly and simply borrow cash from their cryptocurrency assets without having to deal with credit checks or any unnecessary paperwork. To access the company’s instant encryption-supported loan service, new users must open an account at a digital asset exchange and pass mandatory Know Your Customer (KYC) and AML checks.
CEX.IO LOAN serves various cryptocurrency market participants, from retail investors, traders and HODLers to start-ups, entrepreneurs and large enterprises. As part of the flexible crypto-backed loan service, users can borrow any amount between US$500 and US$100,000 at a competitive interest rate (from 8.75% per year). The loan period ranges from 7 days to one year.
Currently, retail users can use their Bitcoin (BTC) or Ethereum (ETH) assets to borrow funds. According to the company’s data, this feature has been strongly demanded by VIP customers. 41% of all CEX.IO LOAN customers use Bitcoin (BTC), Ethereum (ETH) and 6% of DeFi tokens to borrow money.
The company recently launched VIP proprietary features to provide flexible lending conditions and the ability to use decentralized finance (DeFi) tokens as collateral for institutional clients on crypto-supported lending platforms.
In addition, in order to best serve institutional clients, VIP clients’ requests and inquiries are handled separately by a full-time personal manager on the CEX.IO LOAN platform. Interestingly, CEX.IO VIP customers have asked their personal managers about borrowing funds through crypto-backed lending services.
“As institutional investors find that the digital asset industry is becoming more and more attractive, we are happy to provide them with services through our enterprise-level instant encryption-supported loan platform. Security, convenience and compliance are key priorities for corporate customers Matters, this is the function we have always provided to all customers in the fast-growing CEX.IO ecosystem. Most importantly, we want to provide the best service to institutional customers. Therefore, VIP customers can be on the CEX.IO LOAN platform Enjoy exclusive benefits such as a full-time personal manager and flexible loan options,” said Anton Chashchin, Commercial Director of CEX.IO LOAN Services.
In the announcement, the company disclosed more details about the size of funds borrowed by customers on the CEX.IO LOAN platform. According to the company’s data, although retail investors borrow an average of US$1,400, VIP customers require larger loans of varying sizes, with a typical amount of US$1 million or more.
Institutional clients not only need to borrow more funds, but also need longer time (usually ranging from 6 to 12 months) of funds. According to the company, this phenomenon indicates a long-term strategy for VIP clients to manage assets.
About CEX.IO loans
CEX.IO loan It is part of the CEX.IO Group, this service is provided by Gibraltar CEX.IO Limited. Was established in 2013, CEX.IO The company operates one of the largest international exchanges in the cryptocurrency market, and has a reputation among the top ten best trading services of Crypto Compare and the trusted service provider of Coin Metrics. With the multifunctional digital asset exchange, CEX.IO has a team of more than 250 professionals, with offices in the UK, the United States, Ukraine, Cyprus and Gibraltar, serving 3 million customers worldwide. From entry-level cryptocurrency users to professional traders, institutions and enterprises, CEX.IO can meet the needs of various cryptocurrency market participants through reliable and high-security digital asset services.
For many years, CEX.IO Group has been committed to expanding its ecosystem through new solutions, including B2B fiat to encrypted currency exchange solution CEX.IO Direct, liquidity aggregation technology solution CEX.IO Aggregator, a verification and The identity of the compliance platform, and the mortgage service CEX.IO mortgage.
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