Bitfinex, a state-of-the-art digital token trading platform, has added Tezos (XTZ) as collateral on Bitfinex Borrow, a peer-to-peer (P2P) digital token loan portal.
Bitfinex customers will be able to obtain loans of up to 70% of the value of their XTZ holdings in US Dollars (USD). At the date of this announcement, the borrowing rate for XTZ was 1.288% Annual Percentage Rate (APR).
Paolo Ardoino, CTO at Bitfinex, said:
“We’re pleased to welcome the Tezos community to our highly liquid peer-to-peer lending markets. We anticipate great interest from Tezos holders in using Bitfinex Borrow to obtain a personal loan.”
Borrowers can select XTZ from the list of currencies they wish to use as collateral, displayed on the Bitfinex Borrow page, before depositing sufficient collateral into their Margin wallet.
A customer can choose between a variable interest rate based upon the Flash Return Rate (FRR) or a fixed-rate loan. The annual and daily rates, as well as total lending and repayment amounts, are calculated based upon the amount used as collateral, the loan amount, borrowing period and preferred interest rate option.
Ardoino added:
“Major investment funds and retail investors alike may be experiencing FOMO (fear of missing out) as bitcoin’s market cap surges towards US$1 trillion. As bitcoin hovers around US$51,000, Ethereum is also touching record highs. Both technologies represent a monumental advance with which even the most senior figures in the digital token space are still grappling. Rather than following blindly or precipitately, one should first familiarise oneself with this amazing tech, whether one is a financial goliath or novice retail investor. And always remember: do not invest with anything you are not prepared to lose entirely.”
Borrowers can choose the length of time over which a loan is repaid, with fixed-rate loans offering a maximum 120-day term. When an outstanding fixed-rate loan expires after 120 days it is automatically converted into a variable-rate loan.
The personal loan will be credited to a borrower’s Margin wallet. Borrowers can make partial or full repayments on both the principal and interest of the loan by moving funds back into their Margin wallet, thereby reducing their daily interest rate. Borrowers will have to manage their own risk of the fluctuating XTZ price.
While Bitfinex customers verified at the intermediate or full level can obtain access to Bitfinex Borrow, only fully verified users can borrow fiat currencies and withdraw fiat from the platform. To begin the verification process today, please visit: https://www.bitfinex.com/verification
For more information on Bitfinex Borrow, please visit: https://support.bitfinex.com/hc/en-us/articles/900003195246-Bitfinex-Borrow
Important Notes
Nothing in this post is financial, investment, or other advice. Nothing in this post is an offer to borrow or lend or the solicitation, recommendation, or endorsement of any course of borrowing or lending. Any references in this post to returns are only hypothetical and not guaranteed.
* The rates, payment amounts, and the collateral price reflected represent an estimate, based on current market conditions, of the interest rates and amounts payable based on the loan amount, collateral and duration selected. These values are hypothetical and not guaranteed to be the same as, or reflective of the actual interest rate, payment obligations or collateral price applicable to a loan a user decides to take. This information is provided for information purposes only.
About Bitfinex
Founded in 2012, Bitfinex is a digital token trading platform offering state-of-the-art services for traders and global liquidity providers. In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, an OTC market and margin trading for a wide selection of digital tokens. Bitfinex’s strategy focuses on providing unparalleled support, tools, and innovation for experienced traders and liquidity providers around the world. Visit www.bitfinex.com to learn more.
Media Contact
Joe Morgan, Senior PR Manager, Bitfinex