SBI Group launches cryptocurrency lending service for Bitcoin holders
|- SBI Group expands its presence on the cryptocurrency market.
- The new lending service promises a high level of security.
The Japanese financial giant, SBI Group, is expanding its presence on the cryptocurrency market with its brand-new service, VC Trade Lending. According to the company's official press release published on November 24, the new functionality will allow holders to earn interest by lending their assets to the bank.
SBI bets on security and reliability
The service will be offered through SBI VC Trade Co., the cryptocurrency-oriented branch of the Group. The subdivision was established in November 2016 to provide cryptocurrency exchange services and process transactions with digital assets. The company has a dedicated mobile app and a crypto wallet, Cool X Wallet.
In the press release, the company emphasized that all assets are lent to the companies within the SBI Group. This approach ensures high security and reliability of the new service and helps eliminate the counter-party risks and bankruptcy risks in the cryptocurrency industry.
This feature may be particularly important for the cryptocurrency users after a large digital assets lender, Cred, went bust earlier this month after losing customers' money to a fraud.
In October, as FXStreet previously reported, the company fell victim to creative accounting and stopped deposits and withdrawals under the CredEarn program. According to the preliminary estimates, Cred won't be able to cover its liabilities as they are in a large excess of the assets.
What VC Trade Lending has to offer
The new service provides a wide range of trading opportunities based on SBI Group innovations. The company promises to cater to the needs of existing and potential customers.
Currently, cryptocurrency holders can lend their assets for 84 days. The minimal lending amount is 0.1BTC, while the maximum is set at 5 BTC. Initially, only Bitcoins are supported; however, the company plans to expand the range of available assets by including XRP, ETH and other popular coins.
In August 2020, the group launched a trading service for the short-term cryptocurrency derivatives known as contracts for difference (CFD) for Bitcoin, XRP and Ethereum via its foreign exchange trading platform, SBI FX Trade.
CFDs are short-term contracts that allow traders to bet on the difference between the opening and the closing price of the chosen asset. Many global regulators, including the Financial Conduct Authority (FCA) in the UK, consider these instruments too risky for retail traders.
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