Lending money is risky business. But lending money against chronically risky assets like cryptocurrencies takes it to another level.
There are companies, however, within the crypto industry that aim to minimize as much of that risk as possible, with dreams of taking crypto-backed loans mainstream.
One such company is the Celsius Network, which allows customers to borrow against their Bitcoin or other digital currency funds. In an interview with Decrypt, CEO Alex Mashinsky explained the lending process, saying that if you have Bitcoin, for example, Celsius can use that money to lend out either cash or stablecoin-based loans, so the value of whatever the company lends out remains consistent.
Previously, the company only provided these crypto-backed loans through stablecoins such as Tether (USDT), USD Coin, and the Gemini dollar (USDG). But today, the company announced support for four new fiat-pegged currencies through a partnership with stablecoin issuer TrustToken: the True Great Britain Pound (TGBP), the True Australian Dollar (TAUD), the True Canadian Dollar (TCAD), and the True Hong Kong Dollar (THKD). Read More…