In little over a decade since the inception of cryptocurrencies through the vision of Satoshi Nakamoto and his creation of Bitcoin, digital currencies have changed the shape of traditional financial markets. Leveraging on the efficiency, security, and speed of blockchain technology, digital coins and tokens are penetrating every aspect of the financial world.
From credit cards to corporate bank loans, the extension of money from one entity to another is a huge market worldwide. This involves at least two parties. One is the lender, which offers the required amount at a determined interest, and the other is the receiver. The lending of money enables the receiver to use the money for a variety of purposes, from leveraging businesses to start ventures. But interest rates in the market also can go very high, becoming a barrier for people who would otherwise be able to use the money to expand their assets.
Leveraging through lending is a huge market, with estimates that two of the largest assets in the world, real estate and stock exchange to be standing globally at USD 217 trillion with a debt of USD 244 trillion. This amounts to a debt to asset ratio of 80%. On the other hand, the crypto market, with USD 200,000,000,000 has a mere 2% debt to asset ratio.
PawnHub: Expanding the Crypto Lending Market
A blockchain platform, PawnHub.io, is on a mission to capitalize on the largely ignored crypto lending sector. Based in Hong Kong, the fully licensed lending platform is in a perfect place to cater to the largest crypto markets in Asia, namely South Korea, Japan, China, Hong Kong and Singapore.
Using blockchain itself, the platform uses the power of smart contracts to ensure the smoothness of its lending operations. Another feature of the smart contracts is that these digital contracts do not require an intermediary, creating a trustless environment for both the lender and the receiver of the loan. The owners of crypto assets have the security of retaining their ownership, while allowing liquidity of the assets on a near-immediate basis. Receivers of the loan also benefit by instant access to cryptocurrencies and enabling their diversity into assets such as real estate, automotive and other sectors.
The license by the Hong Kong regulators also gives assurance to both parties. Compliant with financial laws, PawnHub.io eliminates the fear of fraudulent activities. However, nothing is perfect. There is always a chance of a client losing their assets. The platform, in anticipation of any issues in the future in this regard, now offers insurance coverage of up to USD 100 million to all of its clients, regardless of their location. The insurance comes with the partnership with CoinBase Custody.
The combination of financial regulatory compliance and insurance coverage makes PawnHub.io the perfect platform for lenders and loaners to access the expanding crypto loan market with peace of mind and security.
For more information on how to access the crypto loan market, visit the PawnHub.io platform.