London headquartered cryptocurrency wallet and exchange provider Blockchain.com has announced a new lending product which allows users to borrow US dollar-denominated stablecoins against cryptocurrency held in their Blockchain.com wallet.
The feature, called Borrow, allows users across 180 countries including India to receive loans in USD stablecoins against equivalent collateral in the form of Bitcoins in their Blockchain.com wallet.
The product is only available to Gold verified users, which does not include users in the United States, Canada and United Kingdom. While the term length for the repayment is flexible, beyond 30 days the platform will deduct interest on the loan on the collateral balance.
The statement issued by the company stated that the product will not affect the credit score of the user.
“Institutional and retail investors have the same financial goals – grow wealth and manage risks
– but the tools at their disposal are vastly different,” Peter Smith, CEO of
Blockchain.com said. “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,” he added.
Blockchain.com is backed by investors such as Lightspeed Venture Partners, Virgin Group and Prudence Holdings.
The announcement comes days after the Supreme Court reversed a ban by the Reserve Bank of India which prevented banks, non-bank lenders and digital wallets from dealing with individuals or companies dealing with cryptocurrencies. The apex court said that from now on, companies in the sector will be able to use banks for deposit, withdrawal as well as other business transactions.
The announcement has also led to global cryptocurrency exchanges and companies in the space announcing that they will now look at expanding India operations through additional investments and partnerships. San Francisco, US headquartered Bitcoin exchange, Kraken said that it will “grow its service in the region (India) through new features and offerings” in a blog post. Global blockchain company HashCash Consultants also said that it will invest $10 million in India in the cryptocurrency and blockchain space in a follow up to the ruling.
However the legality of cryptocurrency in India will be further subject to scrutiny if a draft bill called ‘Banning of Cryptocurrency and Regulation of Digital Currency Bill, 2019’ comes into effect.