Bitstamp, a renowned crypto exchange, has recently launched a new lending product across crypto-friendly markets. This innovative lending product provides daily rewards and up to 4.4% APY with no locks. Borrowers have access to large-cap coins such as bitcoin and ether, as well as Circle's USDC and Tether's USDT. Other cryptocurrencies available include XRP, BCH, LINK, LTC, and APE.

In order to make this product available, the exchange partnered with Tesseract, a Finnish lending firm. Borrowers are required to provide 100% collateral for stablecoin loans. To keep customer loans and assets separate from Tesseract's other partners, the two companies use a different legal entity.

The product is available in certain European countries, Hong Kong, and the United Arab Emirates. Customers from the U.K. or U.S. are unable to benefit from this product, yet.

Jean-Baptiste Graftieaux, CEO of Bitstamp, commented that their exchange is "one of the most regulated" in the crypto sector. The addition of a lending service to their platform is thus taking users to a more secure and reliable world of crypto.

Bitstamp further emphasized their commitment towards transparency by running monthly lending performance reports. The reports will be providing users with valuable data, such as portfolio performance, borrower risk profiles, and concentration level of assets.

In the past period, the crypto lending sector faced a number of challenges, like Celsius's collapse and bankruptcy filing of BlockFi. The regulatory environment in the U.S. has also become stricter. European markets remain more welcoming, which has enabled Bitstamp to launch their product.

According to data from The Block Research, Bitstamp’s spot market volume decreased to $6.34 billion in March from $7.45 billion in the same month last year. But the highest volume was recorded in 2021 in May, when the exchange hit the market with $39 billion.



Other News from Today