PayBito’s Crypto Lending Gains Market Prominence

  • December 14, 2021
  • Jennifer Moore
PayBito’s Crypto Lending Gains Market Prominence

Global cryptocurrency exchange PayBito has put forward a breakthrough in lending services, with the introduction of loans with cryptocurrencies as collateral. Thereafter, the crypto-collateralized lending scheme provides additional liquidity access without the need for divestment. 

CEO Speak

PayBito CEO and Founder Raj Chowdhury explains, ”PayBito envisions a decentralized platform where obtaining a loan against collateral can be as simply done as stated.”

The PayBito loan lending option empowers clients to keep assets within their portfolios while gaining access to funds for other financial investments. Moreover, the features have generated significant interest among crypto-owners and are subsequently leading to an increase in registration.

Getting a Crypto-Collateralized Loan

On completion of registration, new client users may put forward a request to learn the borrowing terms and conditions. Therefore, for better understanding, the summarized process flow includes the following steps:

  • PayBito accepts Bitcoin(BTC) as loan collateral. Bitcoin holdings in the client’s accounts are kept as collateral. PayBito shifts a corresponding amount in bitcoins from the client’s crypto wallet to a specially assigned collateral wallet. The bitcoin amount in holding will be reverted back to the client’s wallet on the entire repayment of the loan, within a period of 12 months. 
  • Bitcoin(BTC) is the only crypto-token accepted as collateral. No other digital assets are valid for collateralization.
  • Borrowers having loan health over 70% can withdraw the excess amount from collateral and transfer it back to their bitcoin wallets. They can apply for another loan with the recently transferred BTC.

Features of PayBito’s Crypto-Collateralized Lending

PayBito puts forward the following features in its crypto-collateralized lending scheme:

  • Loan amounts between US$ 0.5 million and US$ 2 million. 
  • Loan options in multiple denominations- AED, INR, SGD, and USD.
  • 24×7 monitoring and support.
  • Quick conversion between fiat and cryptocurrencies.
  • Both senders and recipients receive settlement notifications within seconds.
  • PayBito charges nominal processing remunerations for the entire process.

Also Read: PayBito to Offer DeFi Payment Solutions to a USA-Based Enterprise

Benefits of Crypto Lending

“Crypto loans provide great speed and flexibility in the lending and borrowing services. Besides, there exists total transparency in movements of funds owing to the underlying blockchain technology,” mentions Chowdhury.

Crypto-collateralized lending facilitates quick loan disbursement without liquidating their crypto assets. Therefore, the features are useful for crypto traders, as it allows them to short crypto and make profits through margin trading by purchasing from one exchange and selling it on another. 

Also Read: DeFi in 2021: An Outlook in Undercollateralized Lending

Final Words

Crypto-collateralized lending, one of the many benefits of the decentralized finance(DeFi) system, expedites loan processes with swift fund transfer against crypto collateral. While some may point out the drawback of over-collateralization, most appreciate the process for its pace, simplicity, and efficiency.

Source: https://www.yahoo.com/now/crypto-collateralized-lending-offered-paybito-092000305.html

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