Bybit Enters the Crypto Lending Game, Joins Major Exchanges
According to recent news Bybit, a Dubai-based cryptocurrency exchange is extending cryptocurrency lending services. It joins hands with other major exchanges providing interest-bearing lending facilities.
Bybit, Cryptocurrency Exchange is a crucial company that rolled out in-house cryptocurrency lending services for the user.
Key Takeaways:
- Dubai-based exchange Bybit is offering in-house cryptocurrency lending services.
- Users can earn interest payouts on deposited cryptocurrency assets.
- Borrowers can get rid of loans to access funds for trading options on the platform.
- Collateral assets must be deposited to protect lenders’ interests.
- Bybit joins other major exchanges offering interest-bearing lending facilities.
Bitcoinsensus took to Twitter and made an announcement that Bybit initiated the launch of in-house cryptocurrency lending services to users.
On 2 May, a Dubai-based exchange announced the launch of the services. It delivers interest payouts to users that deposit cryptocurrency through the new offering of platforms.
From lending pools, this service acknowledges payout hourly interest payments. At the same time, the lender can redeem and deposit loan cryptocurrency tokens without local periods.
Meanwhile, for various trading options on the platform, borrowers on Bybit’s exchange can get rid of loans to tap into the funds. To protect lenders’ interests, borrowers must deposit several collateral assets equivalent to or larger than the loan amount.
Crypto Money took to Twitter and made an announcement that Bybit is rolling out cryptocurrency lending services and joins a handful of the major exchange offering interest-bearing lending facilities.
Ben Zhou, CEO and co-founder of Bybit, made a statement. He said that the intention of the exchange is to provide users with a means to generate returns. Modern traders can access capital from lenders for more advanced trading options on the exchange.
Moreover, Bybit is the main cryptocurrency exchange that provides cryptocurrency lending services to the user. Binance offers small services that allow users to earn interest on deposited cryptocurrency assets.
Nosis took to Twitter and made an announcement that a Dubai-based exchange, Bybit, delivers interest payout to the user that deposits cryptocurrency through the new offerings of the platform.
Additionally, Kraken ran out of American regulatory restrictions, resulting in $30 million settlements with the SEC in February 2023. This settlement is regarding the operation of its crypto assets staking as a service program.
KuCoins also provide lending services on different tokens. OKX provides users with a loan facility to borrow funds on deposited tokens. But it does not provide user lending on its Exchange platform.
In September 2021, the US-based cryptocurrency exchange Coinbase rejected the plans to launch its lending services. This rejection is due to a serious warning from the Securities and Exchange Commission of the United States. The U.S. regulator considered offering security by promising Coinbase 4% annual returns on USD coins deposits.
At the same time, some major cryptocurrency exchanges offer bespoke lending services. To earn interest on loans, digital assets, and decentralized finance, DeFi space presents a myriad of avenues for cryptocurrency users.