The Nasdaq-listed cryptocurrency exchange announced that it had expanded its product suite to add borrowing and lending facilities.
According to the company’s press release published on 22 December, the new service will allow Diginex users to earn interest on their Bitcoin and Ethereum holdings. Users will also be able to borrow these cryptocurrencies against their existing crypto holdings, the company said.
“With interest rates at historic lows, there has never been a better time to offer crypto borrowing and lending,” said Shane Edwards, the Head of Investment Products at Diginex.
He said that the exchange’s new products would have risk-return characteristics that are “unmatched in the traditional marketplace.”
With the crypto borrowing and lending market increasing tenfold over the past 12 months, hedge funds and institutional investors have begun to look for facilities that will allow them to earn an additional return on their crypto holdings.
“The new integrated borrowing and lending platform will manage the entire lending lifecycle, actively managing collateral throughout the term and is a key to providing efficient and liquid markets,” Diginex said in the press release.
Richard Byworth, the CEO of Diginex, explained that borrowing and lending provides a necessary hedge for derivative and volatility traders.
The exchange’s new integrated platform will manage the entire lending lifecycle and will be crucial in providing efficient and liquid markets. The technology will seamlessly integrate with Diginex’s ecosystem to provide licensed borrowing and lending capabilities, the company said, adding that it will be subject to regulatory approvals.
Borrowing and lending will complement a new suite of derivatives and trading tools the company plans on launching soon. These tools include cross-collateralization, portfolio margining, and capital efficiency products.