Customers would be able to earn 1% on their deposits for 84 days. Currently, deposits of as low as 0.1 BTC and as high as 5 BTC will be allowed.
Japanese financial giant SBI Group has announced that it has hit the ground running with crypto lending service starting today.
According to the company, this is being done through its subsidiary SBI VC Trade. The company has decided not to charge any fee for account management or annual membership. Also, there would not be any fee on crypto and Japanese Yen deposits. However, charges would apply for Yen withdrawals.
SBI Group has made tremendous progress in the last few months as its derivative arm SBI Liquidity Market bought an exchange called TaoTao. Also, a number of businesses have been facilitated through its subsidiary.
Details of the SBI Group New Crypto Lending Service
According to the report, the company will initially start with Bitcoin, then along the line add the likes of Ethereum and XRP. Also, the service will add optimal trading opportunities. Customers would have the opportunity to lend cryptos to the company for a stated interest depending on the duration period. Customers would be able to earn 1% on their deposits for 84 days. Currently, deposits of as low as 0.1 BTC and as high as 5 BTC will be allowed to take advantage of the fleeing customers of Cred, a crypto lending platform that has been said to have filed for bankruptcy.
In 2019, SBI Group benefitted a lot from its massive cryptocurrency investment side that saw the company surging by $19.2% on its securities and making a profit of $30 million.
Also, the SBI mining crypto which appears to be the cryptocurrency mining business of the company recorded significant growth. The SBI Ripple Asia has as well been said to be on the verge of covering 50% of the entire network after it is connected. The newly introduced crypto lending service is just one of the many introduced business arms of the company that has the potential to flourish.
The main challenge SBI Group is likely to face is reliability. Customers always face the risk of dealing with a company that may file for bankruptcy in the long run. In the case of Cred, some reports believe that the company mismanaged its funds.
SBI Group has decided to solve this challenge by referring their customers and potential customers to the reliability of the parent company. The announcement published on their website establishes that SBI Group owns all the customer lending destinations for the crypto lending services on the website. They stated that customers can work with them in confidence with their credibility as the reason.
Crypto lending services have over the past few years gained popularity as it appears to solve two main challenges. Firstly, holders can leverage their assets without the need to liquidate them. Secondly, holders can enjoy the surge in the crypto price and at the same time enjoy the interest in the assets.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.