DeFi transforming lending routes on the blockchain

The world of decentralized finance (DeFi) is gradually expanding to encompass a significant share of the global financial lending space by virtue of the inherently trustless manner of operation and the ease of accessing capital. As the crypto ecosystem has grown to a $2-trillion industry by market capitalization, new products and offerings have emerged thanks to burgeoning innovation in blockchain technology. Lending and borrowing have become an integral part of the crypto ecosystem, especially with the emergence of DeFi. Lending and borrowing are one of the core offerings of the…

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Bitcoin Suisse adopts decentralized Liquity as lending product

Bitcoin Suisse has begun offering decentralized finance (DeFi) services to its clients with the addition of the Liquity protocol to its product lineup. It allows customers to post Ethereum (ETH) collateral in the protocol to mint and borrow the Liquity Dollar (LUSD) stablecoin. In an announcement on April 20, Bitcoin Suisse said it will perform all smart contract interactions and system monitoring on its client’s behalf and allow the borrowed LUSD token to be exchanged into any fiat currency. Bitcoin Suisse is a centralized crypto and financial services company founded…

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What is crypto lending and how does it work?

The COVID-19 pandemic had a deleterious effect on the returns from the conventional instruments of investments such as stocks, gold and real estate, driving investors in hordes toward crypto. Individuals and institutionalized investors alike have tried their luck in the industry that has rolled out decent returns even during the worldwide economic slump that horrified many investors. Despite an intense debate raging about cryptocurrency offering a great window to grow wealth with alacrity and its extremely volatile ways, there is no denying the fact the industry has grown rapidly over…

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Meta may introduce tokens and digital currency lending services to apps: Report

Social media giant Facebook’s parent company Meta is reportedly planning to introduce virtual currency named after CEO Mark Zuckerberg as well as lending services to apps it owns, which may include Facebook, WhatsApp, Instagram, and Messenger.  According to a Financial Times report on Wednesday, the move toward tokens and virtual currency is aimed at exploring alternative sources of revenue as interest in Facebook and Instagram drops. Meta’s potential virtual currency, which employees have reportedly dubbed ‘Zuck Bucks’, will be aimed at use in the metaverse. Facebook owner Meta targets finance…

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Powers On… The SEC takes reactionary moves against crypto lending – Cointelegraph Magazine

It is unfortunate that the United States Securities and Exchange Commission has chosen to send a message to the crypto industry by extracting a huge $100 million settlement from the lending platform BlockFi in an administrative proceeding publicly announced on Feb. 14. It was quite a Valentine’s Day kiss — $50 million for the SEC and $50 million for some 32 states that piled on because they saw an easy target. Powers On… is a monthly opinion column from Marc Powers, who spent much of his 40-year legal career working…

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Maple Finance partners with Celsius to launch wETH lending pool

Digital asset lending platform Celsius has become the first pool delegate from the centralized finance market to deploy a crypto-centric lending service on Maple Finance, utilizing the latter’s smart contract and blockchain infrastructure to facilitate a $30 million pool to institutional investors. Celsius succeeds existing pool delegates BlockTower, Orthogonal Trading, Maven 11 and Alameda Research in partnering with Maple on such an endeavor. The introduction of wrapped Ether (wETH) is set to complement the existing accessibility to trade Circle’s native stablecoin, USD Coin (USDC), enabling investors to utilize the asset…

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a16z-backed TrueFi launches DeFi lending market for asset managers

Stablecoin operator TrustToken has launched a new lending marketplace that allows asset managers to create their own decentralized finance products, potentially opening the door to wider mainstream adoption of DeFi solutions.  The new lending marketplace, which is offered on unsecured lending protocol TrueFi, gives independent financial institutions the ability to design, launch and fund new investment products. Asset managers also have access to TrueFi’s pool of lenders and borrowers as well as TrustToken’s institutional offerings. Version 1 of the TrueFi protocol was shipped to institutional clients in November 2020 around…

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UK tax agency cracks down on rules around DeFi lending and staking

Her Majesty’s Revenue and Customs (HMRC), the U.K.’s tax agency, on Wednesday, has released a controversial set of guidance that could affect innovation in Decentralized Finance (DeFi). The updated regulation focuses on the treatment of digital assets specifically for DeFi lending and staking in the UK, and whether returns or rewards from these services are deemed as capital or revenue for taxation purposes. Owing to the cutting edge nature of DeFi these services had fallen into a grey area with tax professionals unsure of how the existing rules apply. “The…

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SEC reportedly probing crypto lending products by Gemini and Celsius

The United States Securities and Exchange Commission (SEC) is reportedly reviewing some of the high-yield crypto lending products offered by Gemini, Celsius Network and Voyager Digital. According to a report published in Bloomberg, the SEC is conducting an inquiry into digital asset lending services. The main focus of the inquiry is reportedly around whether the crypto lending services could be considered securities and therefore must be registered with the commission.  Gemini and Celsius did not immediately respond to Cointelegraph’s request for comment. The SEC’s main concern reportedly lies with the…

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Nexo partners with Three Arrows Capital to launch NFT lending & art financing service

Nexo, the crypto borrowing and exchange platform, has launched an NFT Lending Desk in partnership with NFT hedge fund Three Arrows Capital. The new lending desk caters to over-the-counter, or OTC, clients to offer crypto credit backed by NFTs. Nexo is one of the first crypto lenders to allow customers to borrow stablecoins, ETH, and other cryptocurrencies using certain NFTs as collateral.  The company stated that in its initial iteration, the service will accept Bored Ape Yacht Club and CryptoPunks NFTs, with more collections on the way. Clients can also…

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