For cryptocurrency businesses — exchanges, funds, fiat gateway services — the access to cheap loans backed by the predominant asset on their balance sheets can open up a lot of capital-intensive opportunities.
New products in this field are especially attractive to borrowers from countries with expensive bank loans. For example, in an economically-unstable Argentina, it’s not uncommon to see interest rates above 60%, and with limited options for inflation-resistant store of value.
Annual Percentage Rate (APR) in crypto lending is very low. You can not only get a cheap loan, but also enjoy yields on your capital at minimal risk.
This doesn’t just replace traditional financial institutions, it makes loans and deposits worthwhile for both sides, combining the strengths of the traditional finance and DeFi markets. This is where you will find Credefi!