Cryptocurrency exchange ByBit has recently announced a new crypto lending service that would allow users to generate returns without disruption or lock-up periods. The Dubai-based exchange plans to deliver hourly interest payments from its lending pools to lenders.

The service can be utilized by borrowers to access funds to support their trading endeavors, ensuring that an equal amount of collateral assets is posted as security. According to ByBit co-founder Ben Zhou, his platform’s goal is to offer users potential to yield solid returns by advanced traders being able to access capital from lenders.

ByBit is not the only major cryptocurrency exchange to offer a crypto lending service. Binance, KuCoin and OKX are a few of the other big names - however, the latter only functions to enable lending, not user lending. Coinbase, on the other hand, had announced the launch of its own Lend service in 2021. The service was eventually discontinued as the creation of returns on deposits of USD Coin (USDC) were deemed a security, by the U.S. Securities and Exchange Commission.

Kraken also fell out of compliance with the SEC, leading to a hefty settlement amount of $30 million for its ‘staking-as-a-service’ program.

The decentralized finance (DeFi) sector has been known to facilitate cryptocurrency users to obtain yields from loaned digital assets. This, paired with the offerings from several major cryptocurrency exchanges, provides users with a range of options to maximize returns on their digital assets. The SEC has, however, recently taken more reactionary moves against crypto lending businesses, in light of the turmoil caused by unregulated projects in the space.



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