Victor Ugochukwu · Dec 14, 2020 . 5min read
Blockchain.com Launches Borrow USD Digital against BTC
With this borrow USD Digital against BTC, its customers can now borrow against your BTC and receive digital dollars at a 5% interest rate.
By Victor Ugochukwu · Jul 10, 2020 . 7min read
Giant cryptocurrency company, Blockchain.com launches borrow USD Digital against BTC holdings. It aims to act as a criss-cross between traditional and modern financial solutions cryptocurrency provides.
With borrow USD Digital against BTC, its customers can now borrow against your BTC and receive digital dollars at a 5% interest rate.
Cryptocurrency turf is filled with speculators. Due to the volatile nature of cryptocurrencies like bitcoin, holders have seen BTC jump close to 9% gains in a single day. With these types of gains, many traditional financial institutions like JP Morgan and others have classified bitcoin as a “reckless casino” even threatening to fire staff who engage in trading it. However, JP Morgan backtracked and now the rest like they say is history.
Anticipating crazy gains might be valid reasons for not wanting to sell your BTC. What if you need urgent liquidity but don’t have the means except for your BTC stashed away safely in your wallet anticipating a future rise in price? Borrow USD Digital against BTC clearly solves this and the interest rate is just 5% annual percentage yield.
For now, Borrow USD Digital against BTC is only available to some states in the United States. However, with a focus at expanding globally. It is clearly a welcome development when rolling out to other countries especially as Blockchain.com now supports the Russian Rubles.
The Roger Ver investor-backed Blockchain.com boasts of close to 50M wallets since its creation over 9 years ago. Within just 9 years since establishment, it has become one of the most widely-used crypto companies in the world.
A Springboard for Crypto Startups and other Blockchain Companies
Since creation, Blockchain.com claims to have been the go-to platform for crypto infrastructure with its API. Notable brands like Coinbase rumoured to be preparing for an IPO used its API at some point. Others like Bitpay, Bitstamp, Kraken, and more have also been users. It wields as much as 20,000 per second which has grown to over 1 billion per day.
The march to 1 billion Wallets
Blockchain.com aims to attain 1 billion wallets by 2030. Surely a herculean task especially when blockchain startups and its economy is compared with tradition financial economies like gold and stocks. For perspective, the whole cryptocurrency market capitalization as at this publication hovers slightly above $270 billion according to coinmarketcap. This is just a tiny spec when compared with $50.9 global stock market capitalization of 2019.
With USDT Addition, A floodgate might be Opened
With the much anticipated USDT support by Blockchain.com, this might be ushering a huge surge in users. Obviously for investors and enthusiasts seeking to enjoy the bouquet of services offered by the company. USDT is the most popular and most capitalized stablecoin with over $9 billion in market cap and has seen more than $25 billion day volume. Perhaps, the buzzword anytime soon might just be “Blockchain.com launches borrow USD” especially with the creative spirit of crypto die-hards.