Amid the ongoing growth of the cryptocurrency lending industry, major crypto wallet service Blockchain.com launches a new lending product for all users, not just institutions.
After first launching an institutional crypto lending desk in August 2019, Blockchain.com is now rolling out its crypto lending service to all users across more than 180 countries, the United Kingdom-based firm announced to Cointelegraph on March 10.
Borrow allows users to borrow Paxos Standard against Bitcoin at the launch
At launch, Blockchain.com’s Borrow will only support PAX loans against Bitcoin, while the firm is planning to expand the platform to other assets in the near future, a spokesperson at Blockchain.com told Cointelegraph.
PAX stablecoin is one of the major United States dollar-pegged stablecoins after the largest Tether (USDT). Based on the Ethereum blockchain, Paxos Standard is backed 1:1 by the U.S. dollar and is purportedly the second most widely traded stablecoin in the crypto market after USDT. As of press time, PAX is ranked the 33rd-largest cryptocurrency by market capitalization, which amounts to around $266 million according to data from Coin360.
Expanding crypto lending service exposure from institutional to retail investors
Peter Smith, co-founder and CEO of Blockchain.com, outlined that the new development significantly expands the set of services offered to the firm’s users. Specifically, Smith emphasized that Borrow enables retail traders to trade like the “big guys,” stressing that institutional and retail investors have the same financial goals.
By offering the retail market access to the same liquidity pool as institutional investors, Blockchain.com intends to address the shortage of USD on both sides of the crypto market, the firm noted in the announcement.