2020-2-9 20:00 |
Crypto lending startup Pawnhub has just become Hong Kong’s first fully licensed and insured crypto lender. Pawnhub also has offices in Switzerland, the UK, Taiwan, and Thailand, so this could be huge news. Crypto Lending has Blossomed, is Crypto Insurance Next? Pawnhub has big plans to become one of the premier crypto-lending firms of the Asian-Pacific region. Asian nations have a high degree of technological prowess and great enthusiasm for cryptocurrency and blockchain projects. Many Asian nations are home to some of the largest crypto-markets, along with some of the most forward-thinking crypto-asset friendly regulations. Singapore, Japan, South Korea, and Hong Kong have all passed legislation to make their jurisdiction more appealing to internet money-startups. Pawnhub’s foray into crypto-lending could be huge. The crypto-lending industry has become one of the fastest and most profitable sub-sectors of the overall crypto-asset investment climate of the last 2 years. Pawnhub was able to secure a government license in Hong Kong, as well as announced that they will be partnering with a leading US crypto-asset custody firm, in order to offer insurance of up to $100 million, anywhere in the world, to cover their client’s Bitcoin holdings. Digital currency lending has been growing at an alarming pace, however, it is still very tiny when compared to traditional lending markets. The entire crypto market itself is only $280 billion at the time of writing. This is minuscule when compared to the markets of other asset classes which are in the trillions. The potential for growth is astronomical. Pawnhub wants to be an innovator in this rapidly growing sector. Digital Asset Lending is Making Headlines as the Industry Grows Pawnhub is just the most recent virtual currency lending business to capture headlines, the industry has been in the spotlight lately, as one of the few successful sectors of the overall industry that grew during the crypto winter. Startups like Celsius and Blockfi have had alarming growth, and Pawnhub is aiming to achieve similar success in Asian markets. Pawnhub’s fee structure is transparent and they are providing liquidity for digital asset holders who don’t want to give up their coins. Lending could be one of the most important parts of the crypto industry as it allows coin holders to have access to fiat without giving up their ownership of their bearer assets, during a bear market. The interest on the loan can easily be paid back with the gains during a bull market. We may see this emerge as a major strategy for miners and other types of crypto investors who feel the liquidity crunch when prices plummet. The potential for growth and the early success of crypto-lending startups may cause a stampede of new startups looking to get in on the action, which will bring down fees as borrowers have better options. It could be the start of something big. What do you think of Pawnhub’s new government license? Let us know in the comments! Image via Shutterstock The post appeared first on Bitcoinist.com.
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