Listed DeFi Company AQRU unveils Crypto-collateralized Lending Service
AQRU plc, a decentralized finance (DeFi) company based in the UK, on Tuesday, announced the launch of BlockLender, a start-up providing cryptocurrency-collateralized lending services to users.
According to the report, BlockLender is set to provide digital asset-holders with the opportunity to use their cryptocurrency as collateral to access affordable instant loans.
As per the report, BlockLender operates differently from other firms in the industry in the sense that it does not fund its loans through users’ deposits, but rather invests users’ collateral in smart contracts with well-developed DeFi protocols to generate returns that are used as collateral to fund the underlying loan. This approach enables the firm to keep the interest rate low while limiting the risks for customers, the report said.
Philip Blows, CEO of AQRU and Managing Director of BlockLender, admitted that although crypto-backed loans enable consumers to use their digital assets to transact daily purchases, several providers have taken high levels of risk with users’ funds without their customers’ knowledge.
The CEO said the establishment of BlockLender is part of AQRU’s commitment to providing users with access to services in the cryptocurrency industry that effectively manage customers’ risk and provide them with transparent information on how their assets are being managed.
The above development comes when most consumers globally face difficulty to borrow funds from traditional banks at a time of extremely high-interest rates and persistent inflation. As a result, many regions including the UK have turned to cryptocurrency to gain access to needed credit.
As a result, traditional banks' lending rates grew exponentially, which led to the growth of crypto digital asset platforms that provide up to 50% lower rates and zero maintenance fees.
As the adoption of digital assets grew across the globe, users had to sell their cryptocurrencies to spend on their daily lives. The launch of credit offering services is poised to help people grow their businesses or projects without selling their crypto.
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