Author: Sally; Source: Blockchain Headlines
On March 18, the well-known financial technology information platform Crowdfundinsider released a striking news: Xapo Bank, headquartered in Gibraltar, a bank known for its cryptocurrency-friendly attitude, officially announced the launch of an innovative financial service - a US dollar loan that supports Bitcoin collateral.
At a time when the cryptocurrency market is constantly developing and the integration of traditional finance and encryption is accelerating, Xapo Bank's move is unique. The bank has been committed to exploring the intersection of cryptocurrency and traditional financial business. The Bitcoin-collateralized US dollar loan business launched this time provides a new financing channel for cryptocurrency holders.
Specifically, users only need to use their own Bitcoin as collateral to have the opportunity to obtain a credit line of up to US$1 million. This loan model fully considers the user's demand for funds. The loan period is extremely flexible, ranging from the shortest 30 days to the longest 1 year. Users can freely choose according to their actual situation, which greatly enhances the autonomy of fund use. Not only that, Xapo Bank has also shown great sincerity. For users who need to repay in advance, no fines will be charged. It is truly user-centric and provides convenient and humanized financial services.
Xapo Bank launched this business with a clear purpose, which is to further promote the function of Bitcoin as a value storage and liquidity tool for long-term assets. Through this mortgage lending model, Bitcoin holders can obtain the required funds without selling the Bitcoin they hold, which not only ensures the long-term holding of Bitcoin assets, but also meets the short-term capital turnover needs, so that Bitcoin can fully play its liquidity advantages in the financial market while having the value storage function, injecting new vitality into the healthy development of the cryptocurrency market