Celsius Network, one of the most flexible loan providers in cryptocurrency is now offering loans against 26 different digital assets. With some of the lowest interest rates in the industry, crypto “hodlers” can now borrow stable coins and cash against digital assets they hold with Celsius.
In recent developments, Celsius Network announced that the lending platform will now let cryptocurrency investors borrow against 26 different digital assets. In an effort to be the most flexible loan provider in crypto, Celsius has added new digital assets such as TUSD, PAX, USDT, GUSD, DASH, ZRX, XLM, and the Celsius Network token, CEL. With offering some of industries lowest interest rates, crypto “hodlers” can continue to borrow against their digital assets opposed to liquidating. During unprecedented times, crypto investors continue to flock to Celsius Network opposed to traditional banking.
Back in May of this year, it was announced that Celsius Network was offering 1% APR cash loans against cryptocurrency assets. In addition, the platform had powered through 100,000 users during COVID-19.
Commenting on today's announcement, the CEO of Celsius Network, Alex Mashinsky stated that:
"Celsius users are a community of HODLers. They don't want to sell, but sometimes they need cash. Now we are able to give every HODLer the opportunity to borrow the cash they need without selling any of their assets."
How To Apply
Unlike traditional finance, Celsius Network strives to create infrastructure that fosters income equality and economic opportunity. With this being said, crypto investors can use their crypto as collateral and be eligible for 25%, 33%, or 50% of the value in stablecoin or cash value. During the application process, the user is not required to disclose their credit history. On their website, Celsius Network will calculate a loan amount based on how much collateral is being given. In addition, a user can then apply for the loan after filling out other information such as the desired term length.
Why Are People Borrowing?
As interest rates have approached near 0% levels, this has incentivized many individuals to take out cash to finance different projects. Unlike traditional banks, the lending process in crypto has become seamless and lucrative. Using cryptocurrency as collateral offers people liquidity but also lets investors keep the potential upside in their digital assets. With a falling US dollar, depreciating assets, and tedious due diligence process, investors are flocking to crypto for lending solutions.
According to a blog post by Celsius Network , another core advantage is “better rates & tailor-made terms.” In traditional finance, billionaires receive special treatment from financial institutions such as better loan rates. With Celsius, rates are “democratized,” meaning the company focuses on the fairest terms, regardless of one's financial standing.
About Celsius Network
Founded in 2017, Celsius is eliminating traditional banking by offering an alternative financial infrastructure that promotes financial freedom, income equality, and economic opportunity. By cutting out traditional banks, Celsius is offering banking solutions that finally act in the best interest of the client. Celsius is disrupting traditional finance by offering solutions that are irrelevant in banking today. By using crypto as collateral, investors have access to liquidity and the ability to retain their digital asset ownership. The company has 100K+ users worldwide with $730M in deposits / collateral from loans under management. In addition to borrowing, the Celsius platform lets users buy coins and earn passive income through interest on crypto holdings.
Image Source: Celsius Network