Exchanging cryptocurrencies The most recent significant platform to provide users an internal cryptocurrency lending service is ByBit.
The service was introduced by the Dubai-based exchange on May 2, and it offers users who deposit cryptocurrency through the new platform interest payments. The business promises to pay out hourly interest from lending pools while allowing lenders to deposit and redeem tokens they have lent out without any lock-up restrictions.
Borrowers on ByBit’s exchange can obtain loans in the interim to access capital for a range of trading possibilities on the platform. To protect lenders’ interests, borrowers must post an amount of collateral assets that is equal to or larger than the amount of the loan.
According to a statement from Ben Zhou, the CEO and co-founder of ByBit, the cryptocurrency exchange aims to give customers a way to make money while more experienced traders can obtain funding from lenders for the exchange’s more complicated trading choices.
The most recent significant cryptocurrency exchange to provide a coin lending service is ByBit. A few of the services that Binance provides let consumers earn interest on deposited bitcoin assets.
Another exchange in the top five by trading volume is KuCoin, which provides lending services on a wide range of tokens. Although OKX allows users to borrow money against deposited tokens, it does not enable user lending on its exchange platform.
Following a stern warning from the US Securities and Exchange Commission, American cryptocurrency exchange Coinbase abandoned plans to launch its own Lend service in September 2021. Lend promised rewards of 4% annually on deposits of USD Coin (USDC), which the American regulator had recognized to be a security.
In the United States, Kraken ran afoul of legal limitations, which ultimately resulted in a $30 million settlement with the SEC regarding the operation of its crypto asset staking-as-a-service program in February 2023.
The decentralized finance (DeFi) industry offers a variety of opportunities for cryptocurrency users to earn interest on lent digital assets, even if only a small number of the largest cryptocurrency exchanges provide specialized lending services.
