Liquid partner Lendingblock launches crypto lending platform

In Insights

Liquid partner Lendingblock reached a major milestone this month, successfully launching a groundbreaking institutional crypto lending platform.

Lendingblock capitalizes on demand for a proprietary lending exchange that can bring securities lending to the crypto space.

Loan markets have now opened, providing institutional market participants with access to loans of BTC, ETH, PAX and USDT. A 50 BTC order hit the books soon after launch for a 7-day loan at 8.5% interest, an attractive rate compared to other loan markets in crypto.

Activity on the platform is expected to grow steadily in the coming months as clients, including funds, OTC desks, other crypto lenders, exchanges, prime brokers and custodians begin to use the services on offer.

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Darius Sit, Managing Partner at Singapore-based crypto trading firm QCP Capital, said:

"Having access to an institutional exchange where the lending supply and borrow demand is organized centrally and highly transparent in terms of being able to see the rates across different crypto assets and terms is something that the market most definitely should benefit from."

Steve Swain, Lendingblock CEO, said:

"We see the Lendingblock exchange as a key piece of market infrastructure that will provide efficiencies and support healthy markets in the crypto economy. We look forward to bringing the first institutional lending exchange to market and believe it will play an essential role in facilitating clients’ trading strategies and also in helping the crypto market infrastructure to mature."

WATCH: Coinbase, Lendingblock, Liquid and QZ discuss regulation in the crypto space.

Just the beginning for Lendingblock

Lendingblock is just getting started. Around 12% of shares in the US stock market are being used in securities lending at any one time, which gives an indication of potential for growth.

Already listed on Liquid, LND, the native currency of the Lendingblock ecosystem, is used for interest payments on loans. Platform use should drive demand for the LND token. The more loans, and the longer the loans are, the more need there will be for LND.

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This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.

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Liquid

Providing liquidity for the crypto economy.