Draper Associates, the VC firm led by the legendary investor Tim Draper, has led the .5 million seed round of Zest Protocol, a Stacks-based Bitcoin lending market. The round, which also had the participation of Binance Labs, Flow Traders, Trust Machines, and others, seeks to allow bitcoin holders to put their capital to use using […]
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Xuirin Finance Set to Revolutionize DeFi With KYC-Free Debit Cards, P2P Lending and Much More
Looking to get involved with a platform that can change the face of decentralized finance forever? Xuirin Finance is revolutionizing the DeFi landscape through its innovative offerings like KYC-free debit cards, P2P lending, and so much more. Supporters can take part in the first stage of its presale right now. Xuirin Finance to Offer Futuristic […]
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Nexo Secures Preliminary VARA Approval to Launch Crypto Lending and Brokerage Services in Dubai
On Tuesday, Nexo announced its Dubai entity, Nexo DWTC, had secured preliminary approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to engage in virtual asset lending, borrowing, and broker-dealer activities within the UAE’s most populous city. Nexo Gains Initial VARA Approval for Dubai Crypto Operations The crypto lender Nexo received a provisional “Initial Approval [IA]” […]
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UniLend V2 Launched on Mainnet: First-Ever Permissionless Lending and Borrowing Protocol for All Digital Assets
PRESS RELEASE. February 13, 2024. UniLend Finance, a leading decentralized finance protocol, has launched its revolutionary new version UniLend V2 on the Ethereum Mainnet. UniLend V2 marks a significant milestone as the first-ever permissionless lending and borrowing protocol for all ERC20 tokens, opening doors to DeFi for everyone and revolutionizing the digital asset landscape. Being […]
Bitcoin News
Court Filing Shows Genesis Settled With NYAG, Aims to End Crypto Lending Platform Dispute
After settling with the U.S. Securities and Exchange Commission (SEC), Genesis Global has reportedly reached an agreement to settle with the Office of the New York Attorney General. The official had accused the company, along with its parent company Digital Currency Group and Gemini, regarding “fraudulent schemes” associated with its lending platform. Genesis and NYAG […]
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Swiss Bank Offers Clients Crypto Lending Product
Swiss online bank Dukascopy has introduced a new lending product that enables customers to borrow against their cryptocurrency. The solution allows users to receive 50% of the value of their digital assets in fiat currency while retaining their original crypto investments.
Switzerland-Regulated Dukascopy Bank Launches Automated Crypto Lending Feature
Geneva-headquartered Dukascopy Bank is now offering clients an option to borrow cash in U.S. dollars while keeping their investments in cryptocurrency. Under the bank’s new lending program, they can receive a loan for 50% of the value of their crypto assets in fiat equivalent.
To take advantage of the feature, customers need to open a multi-currency bank account (MCA) and transfer the crypto they want to use. Then they can find the digital assets in the “Investments” section and select the “Crypto lending/borrowing” option. The bank said in a press release:
In your MCA account, you will find 50% of your investment market value in fiat.
Upon signing a “Trading Agreement,” users will also receive login credentials for a trading sub-account, in which they’ll find another 50% of the investment market value of their crypto in fiat as collateral as well as their crypto investment as an open position.
This means that if you send 0.1 bitcoin (BTC) to your MCA account, you would receive ,405 and change (at the time of writing) on your bank account and the same amount of fiat on your trading account, according to the online calculator on the bank’s website.
Dukascopy would also open a long margin position of 0.1 BTC/USD on the trading sub-account. All these operations are automated, the Swiss financial institution noted, adding that a commission of 1% applies to the incoming crypto transfer.
The new offering of Dukascopy Bank, which is regulated by the Swiss Financial Market Supervisory Authority, comes in challenging times for the cryptocurrency industry as a whole and the crypto lending sector in particular, with increased regulatory pressures and high-profile bankruptcies such as those of Celsius and Voyager.
Do you expect to see more crypto lending products offered by traditional banks in the future? Tell us in the comments section below.
Coinbase Launches Crypto Lending Service for Institutional Investors
Digital asset exchange Coinbase will be offering cryptocurrency loans to institutions in the United States. With the new service, the leading U.S. crypto trading platform seeks to fill the market gap opened by the collapse of companies like Celsius, Genesis, and Blockfi.
Crypto Exchange Coinbase Starts Offering Crypto Loans to Institutions
Cryptocurrency exchange Coinbase has launched a crypto lending service targeted at large institutional investors in the U.S., Bloomberg reported, noting that the move is aimed at capitalizing on the void left by the bankruptcies of major platforms in this sector.
According to a filing with the U.S. Securities and Exchange Commission (SEC), million have been invested already in the lending program by customers of Coinbase Prime, the exchange’s brokerage platform that allows institutional players to execute trades and custody assets.
“With this service, institutions can choose to lend digital assets to Coinbase under standardized terms in a product that qualifies for a Regulation D exemption,” the crypto company said in a statement on Tuesday. The exchange can then use borrowed funds to offer loans to other institutions.
Coinbase’s new business initiative comes in the aftermath of last year’s high-profile collapses of lenders Celsius Network, Blockfi, and Genesis Global. The string of failures resulting from risky bets eventually limited borrowing and leverage options for investors.
The largest American crypto exchange has previous experience with lending through a service for retail investors, Coinbase Borrow, but it stopped issuing such loans in May. The entity that operated that service, Coinbase Credit, will manage the new institutional program as well.
Like other crypto companies, including the world’s biggest digital asset exchange Binance, Coinbase has been targeted by U.S. regulators in an ongoing crackdown on the industry that has affected crypto business in the United States.
In June, the SEC charged Coinbase with unregistered offers and sales of securities in connection with its staking-as-a-service program. The latter allowed users to give their digital coins to the exchange and earn yields to secure blockchain networks.
Do you expect institutional investors to use Coinbase’s new lending service? Tell us in the comments section below.
BRICS Bank to Issue First Indian Rupee Bond — Plans to Boost Local Currency Lending
The New Development Bank (NDB), also known as the BRICS Bank, is reportedly planning to issue its first Indian rupee bond by October. Last week, the bank issued its first South African rand bond. “NDB is seeking to increase its presence in the local capital markets of its member countries, to fund its robust portfolio of local currency loans,” said the BRICS Bank’s chief financial officer.
BRICS Bank to Issue INR Bond
The New Development Bank (NDB), commonly referred to as the BRICS Bank, is planning to issue its first Indian rupee bond by October, Reuters reported, citing Vladimir Kazbekov, vice president and chief operating officer of the BRICS Bank.
The NDB is a multilateral development bank established by the BRICS nations (Brazil, Russia, India, China, and South Africa) with the purpose of mobilizing resources for infrastructure and sustainable development projects in emerging markets and developing countries. In 2021, the BRICS Bank initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates, and Uruguay as its new member countries.
Kazbekov stated during a press briefing on Monday:
We’re going to tap Indian market — rupees — maybe by October in India.
“Now we start thinking seriously … to use one member country’s currency to finance projects with that currency in another member. Let’s say, a project in South Africa to be financed in CNY (Chinese yuan), not with USD (U.S. dollar),” he added.
The Shanghai-based lender aims to increase local currency lending, most of which has so far been in the Chinese yuan, from about 22% to 30% by 2026. Dilma Rousseff, the former Brazilian leader who heads the New Development Bank, recently told the Financial Times that the bank expects to lend between billion to billion this year. “Our aim is to reach about 30% of everything we lend . . . in local currency,” she emphasized.
On Aug. 15, the New Development Bank announced the successful issuance of its first ZAR bond in the South African bond market. Leslie Maasdorp, the BRICS Bank’s chief financial officer, explained at the time that “the proceeds will be used to fund infrastructure and sustainable development projects in South Africa.” He noted:
NDB is seeking to increase its presence in the local capital markets of its member countries, to fund its robust portfolio of local currency loans.
What do you think about the BRICS Bank issuing Indian rupee bonds and seeking to increase local currency lending? Let us know in the comments section below.
RUNE Beyond Swaps: THORChain Introduces New Lending Protocol
In a recent development, THORChain (RUNE), the liquidity network, has unveiled its lending feature, enabling users to leverage their native Layer-1 (L1) assets, such as Bitcoin (BTC) and Ethereum (ETH), to secure loans denominated in TOR, a USD equivalent stablecoin.
According to the announcement, this move opens up new avenues for financial participation, allowing users to borrow funds without the “burdens” of interest, liquidations, or expiration.
THORChain Introduces Interest-Free Loans
The lending process is designed to be user-friendly and “straightforward,” focusing on minimizing cognitive burden.
Depending on prevailing market conditions, borrowers can collateralize their assets within a range of collateralization ratios (CR), ranging from 200% to 500%. The CR determines the amount of debt borrowers can receive in proportion to their collateral.
One of the critical advantages of THORChain’s lending protocol is the absence of interest charges. By eliminating interest, the protocol encourages borrowers to hold onto their loans for extended periods, thereby increasing the equity value of the protocol.
This approach aims to align the interests of borrowers with the protocol itself, fostering a mutually beneficial ecosystem.
Furthermore, THORChain’s lending system does not involve liquidations. In traditional lending models, borrowers risk having their collateral forcibly sold if its value falls below a certain threshold. However, THORChain’s design eliminates this risk by treating the collateral as equity (RUNE IOU).
Consequently, if the collateral falls below the debt value, it does not pose a problem, as the stored equity acts as the liability. Per the report, this approach ensures a more user-friendly experience and eliminates the need for borrowers to monitor asset prices constantly.
The loans issued through THORChain’s lending feature have a minimum period of 30 days, providing borrowers with flexibility.
Repayment can occur anytime after the initial 30-day period, allowing borrowers to manage their debt according to their circumstances. Partial repayments are also possible, although the collateral is not released until the debt is fully repaid.
THORChain’s Circuit Breaker System
To enhance security and protect against inflation, THORChain has implemented a circuit breaker mechanism.
In the event of a drastic drop in RUNE’s price-native token of the THORchain network- against collateral assets such as BTC and ETH, which could lead to net inflation of RUNE, the system will pause new loans and disable the lending feature.
At this point, no further inflation of RUNE can occur, and the protocol’s reserve will cover the remaining collateral payouts.
Initially, the lending feature will support BTC and ETH collateral, with plans to expand to other Layer 1 gas assets, including Binance Coin (BNB), Litecoin (LTC), Avalanche (AVAX), and DOGE.
According to the announcement, this expansion will further diversify borrowing options, accommodating a broader range of users and assets.
Overall, with the introduction of the lending feature, THORChain takes a significant step toward expanding financial opportunities within its liquidity network.
As of the latest update, THORChain’s native token, RUNE, has experienced a decline of nearly 8% within the past 24 hours, currently trading at .694, despite the anticipation surrounding the announcement of the new lending protocol.
Nevertheless, the token has successfully maintained substantial gains of 20% and 80% over the past seven and fourteen days, respectively, attributed to a simultaneous increase in the social volume of the THORChain cryptocurrency.
Featured image from iStock, chart from TradingView.com
Gemini Challenges SEC Lawsuit on Lending Program, Pushes for Oral Hearing
Lawyers for cryptocurrency exchange Gemini have filed a motion seeking to dismiss a lawsuit brought against it by the U.S. Securities and Exchange Commission (SEC) over its Gemini Earn lending program. In the motion, Gemini argues the SEC has failed to plausibly allege that any securities laws were violated.
Gemini Moves to Dismiss SEC Claims, Advocates for Oral Argument
Earlier this year, the SEC accused Gemini and its associate, Genesis Global Capital, of illicitly offering and vending unregistered securities via the Gemini Earn program. According to the SEC, both the program’s Master Digital Asset Loan Agreement and the program itself were unregistered securities unlawfully offered and sold.
Gemini, however, has fired back in its motion to dismiss which seeks an oral hearing. The firm challenges the SEC’s inability to provide evidence of actual “sales” of securities — a crucial component to prove a violation of the Securities Act.
Gemini emphasizes that the SEC’s allegations are ambiguous about when, how, or to whom these supposed securities sales happened. Furthermore, they question if any transactions concerning the loan agreement or lending scheme were ever exchanged “for value,” a vital aspect of what defines a securities sale.
The motion underscores that the SEC seems to be merely highlighting loans under the program instead of actual securities sales. It insists there’s a lack of concrete evidence suggesting any transfer of interests in the loan contract or the program. Just because something could be deemed a security, Gemini retorts, doesn’t indicate a Securities Act breach in the absence of specific sales events.
Furthermore, Gemini points out inconsistencies in the SEC’s stance. The SEC sometimes labels the loan agreement as the security while elsewhere it suggests the entire lending program is. Gemini underlines this blurred distinction as a critical flaw in the SEC’s case.
The dismissal motion stresses the SEC’s oversight in detailing sale conditions, pricing strategies, ownership transfers, or other markers pointing to real sales. Gemini asserts that the SEC is blurring the lines between proving a security’s existence and showing actual transaction evidence.
Based on civil procedure principles and statutory interpretation norms, Gemini pushes for a dismissal. They argue that the SEC’s claims lack plausibility and emphasize that the court should stick to the statute’s clear language, which Gemini believes hasn’t been fulfilled. The exchange already pushed for a dismissal at the end of May after Gemini co-founder, Tyler Winklevoss, called the SEC’s enforcement lawsuit “super lame.”
What do you think about Gemini’s move to dismiss the SEC lawsuit? Share your thoughts and opinions about this subject in the comments section below.