Popular cryptocurrency services firm Blockchain.com has announced a new product, which allows users to borrow stablecoins. The product is called Borrow and only allows users to borrow stablecoins that are pegged to the U.S. Dollar.
According to an official page, Borrow allows users to borrow the Paxos Standard token (PAX) using Bitcoin (BTC)as collateral. The platform, however, says that in the near future, it will allow users to borrow a wider selection of assets. Blockchain.com also says that Bitcoin is currently the only accepted collateral at the moment. Furthermore, loans are currently not available to users in the United Kingdom, Canada, and the United States.
Blockchain.com explains that users are free to borrow the funds immediately their Bitcoin collateral is properly processed. The platform will not control how the funds are spent.
Speaking on the new development, Blockchain.com CEO Peter Smith suggests that Borrow evens the trading playing field, allowing smaller holders to trade with larger amounts without losing their crypto.
“Institutional and retail investors have the same financial goals – grow wealth and manage risks – but the tools at their disposal are vastly different. Now, with our suite of trading products and Borrow, retail users can trade like the big guys without selling the crypto they’ve stockpiled or leaving their wallet.”
Blockchain.com added support for Polkadot Tokens last year.