Hodl Hodl offers non-depository, bitcoin-backed lending service in the United States
DHodl Hodl decentralized cryptocurrency exchange today announced that its lending service, Lend at Hodl Hodl, is now available to customers in the United States
“Lend at Hodl Hodl is a global, P2P, non-depository, bitcoin-backed lending platform where anyone can lend or borrow stablecoins anonymously on a P2P basis,” according to an announcement shared with Bitcoin Magazine.
The service allows users to create a loan agreement and deposit bitcoin as collateral into its escrow directly from their wallet. The lender then transfers the loan amount stated in the contract to the borrower and, once repaid, the lender puts the bitcoin back into the borrower’s wallet.
As a decentralized exchange, Hodl Hodl acts more as a secure intermediary facilitating peer-to-peer (P2P) exchanges between users. The Lend product is an extension of this non-depository model.
“Unlike most existing lending platforms, Hodl Hodl does not store user funds, instead locking the collateral into multisig escrow, with users holding the keys,” according to the announcement. “The platform has also eliminated the use of fiat, to avoid any associated risk. The team believe that the anonymity, lack of custody and prohibition make it a true Bitcoin DeFi product.
This is the first product that Hodl Hodl has extended to users in the United States, according to the exchange.
“We’ve always wanted to serve US customers, but there were issues that tied our hands,” said Max Kei, CEO of Hodl Hodl, in the announcement. “Now, by launching a Bitcoin DeFi product, we want to go beyond these issues. We see this project bringing value to Bitcoiners around the world, which is why we are removing the borders. In the future, we aim to provide more products to US users.
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