Bitstamp Announces Launching of New Lending Services in Europe, Hong Kong, and UAE: Collateral for Stable Currency Loans

According to reports, Bitstamp, the cryptocurrency exchange, announced today the launch of new lending services in the new European market, Hong Kong, and the United Arab Emirates. Bitstamp collaborates with Finnish loan company Tesseract to provide a white label platform. Borrowers on the Tesseract platform must provide 100% collateral for stable currency loans. The partner uses different legal entities to separate customer loans and assets from Tesseract’s other partners.

Bitstamp launches new lending services in the crypto friendly market

Cryptocurrency exchange Bitstamp has added a new lending service to its list of offerings, aimed at the European market, Hong Kong, and the United Arab Emirates. The platform has collaborated with the Finnish loan company, Tesseract, to create a white-label platform to facilitate the secure lending of funds using stable currency loans. The service requires 100% collateral from participants, and Bitstamp and Tesseract use different legal entities to separate customer loans and assets from the other partners.

A Look at Bitstamp

Founded in 2011, Bitstamp is a Luxembourg-based cryptocurrency exchange that is known for its high-security standards and ability to process transactions quickly. The platform is available in over 50 countries and supports trading in Bitcoin, Ethereum, Ripple, and other cryptocurrencies.
However, the exchange is not content with just being a trading platform. It has identified a gap in the market for cryptocurrency lending services and has decided to launch a new offering using a white-label platform that has been developed by Tesseract.

Tesseract’s Role in the Partnership

As part of the collaboration, Tesseract has developed a white-label platform that allows Bitstamp to provide lending services to its users. The loan company was founded in 2017 and is based in Helsinki, Finland. Tesseract’s key product is its lending platform, which provides individuals and businesses with instant loans under fair terms.
The partnership with Bitstamp is not Tesseract’s first foray into cryptocurrency. The company has been actively involved in the crypto space for some time and has previously partnered with Liquidity.Network to create a white-label version of its platform.

Collateral for Stable Currency Loans

As previously mentioned, the new lending service requires 100% collateral for stable currency loans. This means that borrowers must put up the full equivalent value of the stable currency they want to borrow in order to qualify for the loan. The platform will then loan out fiat currency, which the borrower can use to make purchases or payments.
Despite the 100% collateral requirement, the new lending service is expected to be popular. With the high volatility of cryptocurrency prices, the use of a stable currency provides a level of certainty for borrowers, making it easier for them to plan and make informed decisions.

Separating Loans and Assets

Another key feature of the new lending service is the use of separate legal entities to separate customer loans and assets from the other partners. This is an important consideration for users, as it provides an additional layer of protection should anything go wrong with the platform.
By creating separate legal entities, Bitstamp and Tesseract are able to offer their lending services with confidence, knowing that both the lender and the borrower are protected. This is just one of the many ways in which the two companies are working to ensure that their lending service is safe, secure, and reliable.

Conclusion

Bitstamp’s new lending service represents another significant development in the world of cryptocurrency. By partnering with Tesseract, Bitstamp is able to provide a platform where users can securely lend and borrow funds using stable currency loans. With the addition of collateral requirements and separate legal entities, borrowers can have confidence in the safety of their assets.
As the world of cryptocurrency continues to evolve and mature, the addition of new lending services will likely become the norm. With global demand for cryptocurrency set to continue growing, the need for secure, reliable lending platforms is only going to increase.

FAQs

Q1. What is collateral for stable currency loans?

Collateral for stable currency loans requires a borrower to put up the full equivalent value of the stable currency they want to borrow as collateral. The lender can then loan the borrower fiat currency, which the borrower can use to make purchases or payments.

Q2. Why is separating loans and assets important?

Separating loans and assets using different legal entities is essential to protect borrowers and lenders in the event of something going wrong with the platform. It is an additional layer of protection that helps to ensure the safety and security of both parties involved.

Q3. Why is Bitstamp collaborating with Tesseract?

Bitstamp is working with Tesseract to create a white-label platform that will enable it to offer lending services to its users. Tesseract’s expertise in the lending space, combined with Bitstamp’s extensive network and influence in the cryptocurrency world, makes for a powerful partnership that can offer users a secure, reliable lending service.