Dubai-based cryptocurrency exchange, ByBit, has announced the launch of its internal cryptocurrency lending service. This service allows users to deposit cryptocurrency and receive interest payments.
📣 We are excited to announce the launch of #Bybit Lending!
You can now earn hourly interest of up to 16.46% on your idle assets.
📚 Learn more here: https://t.co/u7XRX6Jq4V#TheCryptoArk #BybitProducts pic.twitter.com/l5WxLn3RJl
— Bybit (@Bybit_Official) May 2, 2023
The lending service provides an alternative way for traders and investors to profit from their cryptocurrency holdings. Borrowers on the ByBit exchange are required to post collateral assets equal to or greater than the loan amount to ensure the protection of lenders. Lenders can deposit and redeem cryptocurrency tokens they have lent out without any lock-up periods, and the service promises hourly interest payments from lending pools.
ByBit’s CEO and co-founder, Ben Zhou, stated that the exchange aims to offer customers a way to earn money while experienced traders can obtain funding for the exchange’s more intricate trading choices.
The introduction of ByBit’s lending service follows the trend of other major cryptocurrency exchanges offering coin lending services. Binance provides several services that allow customers to earn interest on their deposited Bitcoin assets, while KuCoin offers lending services on a wide range of tokens. OKX allows users to borrow money against deposited tokens but does not enable user lending on its exchange platform.
In September 2021, American cryptocurrency exchange Coinbase abandoned its plan to launch its Lend service following a stern warning from the US Securities and Exchange Commission (SEC). The Lend service promised annual rewards of 4% on deposits of USD Coin (USDC), which the American regulator recognized as a security.
Bybit also recently introduced a new feature called the Web3 Staking Pool. The feature is the first of several Web3 Staking Pools developed by Bybit. The Web3 Staking Pool allowed customers take advantage of the ETH staking opportunities the exchange provides before the much-awaited Shanghai Ethereum network update.
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