Bitfinex, a digital token trading platform, has added euro (EUR) and yen (JPY) to Bitfinex Borrow, a peer-to-peer (P2P) digital token loan portal.
Bitfinex, a digital token trading platform, has added euro (EUR) and yen (JPY) to Bitfinex Borrow, a peer-to-peer (P2P) digital token loan portal.The addition of EUR and JPY to Bitfinex Borrow provides users with additional sources of liquidity for trading strategies. Borrowers will be able to leverage their bitcoin (BTC) holdings by using BTC held on the platform as collateral in order to obtain a loan in either EUR or JPY.
Borrowers will be able to obtain loans of up to 80 per cent and 70 per cent of the value of their bitcoin holdings in EUR and JPY, respectively. A EUR and JPY loan levy a typical Annual Percentage Rate (APR) of 4.56 per cent and 62.53 per cent, respectively.
“We’re pleased to make these two major currencies available to our growing customer base on Bitfinex Borrow,” says Paolo Ardoino, CTO at Bitfinex. “Broadening the loans available in our highly liquid peer-to-peer lending markets further demonstrates our commitment to offering new products that appeal to our users.”
Borrowers can choose between a variable interest rate based upon the Flash Return Rate (FRR) or a fixed-rate loan. The annual and daily interest rates, as well as total lending and repayment amounts, are calculated based on the amount of bitcoin put down as collateral, loan amount, borrowing period and preferred interest rate option.
Users can make a partial or full repayment on both the principal and interest of the loan by moving funds back into their Margin wallet, thereby reducing their daily interest rate. Borrowers of EUR or JPY will have to manage their own risk of fluctuating bitcoin prices.
