Nasdaq-listed crypto exchange, Diginex (Nasdaq: EQOS) announced on Tuesday the expansion of its product suite with the addition of digital currency borrowing and lending services.
The new service came with the increasing institutional interest in digital currencies, along with the demand for crypto-backed loans. Diginex highlighted that its new service will allow hedge funds and institutional investors to earn an additional return from their cryptocurrency holdings.
Commenting on the development, Diginex Investment Products Head, Shane Edwards: “With interest rates at historic lows, there has never been a better time to offer crypto borrowing and lending. We are excited to unveil truly differentiated products with uniquely attractive risk-return characteristics, unmatched in the traditional marketplace.”
Crypto Lending Is Gaining Popularity
The service will allow Diginex customers to lend and earn interest on their Bitcoin and Ethereum holdings. Additionally, it will allow customers to borrow against the crypto holdings.
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The borrowing and lending services followed the crypto exchange’s listing on the US stock exchange in October, thus becoming the first crypto exchange on Nasdaq.
The addition of the latest services indicates Diginex’s ambition of becoming a crypto-focused financial services company. Further, it offers custodian services and launched warm wallet Helios, a hot wallet with the security features of a cold wallet.
“Borrowing and Lending provides yield to this asset class and a necessary hedge for derivative and volatility traders as we continue to expedite the growth of crypto derivatives. We look forward to completing the integration of this institutional-grade technology,” Diginex CEO, Richard Byworth added.
Meanwhile, other major financial companies with tier toes into crypto are starting digital currency-backed lending services. Most recently Japan’s SBI Holdings launched Bitcoin lending services while the digital asset arm of Fidelity is also thinking of the same.