Crypto Trading Platform Bitstamp Introduces XRP Lending Service
Crypto trading platform Bitstamp has launched an XRP lending service that offers a “permanent” 2% yield. This comes after the relisting of XRP for trading on the platform. Bitstamp partners with Tesseract for its lending service, which assesses and evaluates borrowers for risk and credit. The lending service includes coins such as Bitcoin, Ethereum, USD Coin, and Tether USD, all with a 2% annual percentage yield (APY).
Key Points:
- Bitstamp introduces XRP lending service with a 2% yield.
- Lending service includes other coins such as Bitcoin, Ethereum, USD Coin, and Tether USD.
- Tesseract partners with Bitstamp for the lending service.
- Most lending portfolio is deployed to Tier 2 firms, which are top-tier crypto-native market makers.
- Bitstamp’s lending rate for XRP is lower compared to USDT and USDC.
The Risks of Lending
Crypto lending has gained popularity as a way for crypto holders to earn on their existing assets. However, there have been instances of major lending firms going bankrupt as crypto market prices declined. Regulators have also warned about the risks associated with crypto lending products. Bitstamp’s lending service is not available to residents in the United States, United Kingdom, Canada, and Japan due to regulatory pressure.
Hot Take:
Bitstamp’s introduction of an XRP lending service with a 2% yield may not be as enticing as some had hoped. The lending rate for XRP is lower compared to other coins, and there are risks associated with crypto lending. While it provides an opportunity for crypto holders to earn on their assets, it is important to consider the potential risks and regulatory limitations.
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